West Texas Intermediate crude fared better yesterday as it reached the highest in the last three weeks. Additionally, crude oil prices gained marginally in Asia in today’s trading despite the better trading in the overnight on an upbeat U.S. initial jobless claims report. It was better trading day for light sweet crude futures on the New York Mercantile Exchange wherein for delivery in January traded at USD95.24 a barrel, up 0.04%.
Yesterday, crude hit a session low of USD93.47 and a high of USD95.58. A better signal from the Department of Labor report that the number of individuals filing for initial jobless benefits in the U.S. last week fell by 21,000 to a seasonally adjusted 323,000 gave better prospect for traders. The news boosted confidence among investors who expect that the oil consumption will increase in the coming weeks.
The oil prices are gaining amidst the talks among the U.S., Russia, China, Britain, Germany, France and Iran which are trying to reach a settlement on the Iranian nuclear program. Nonetheless, investors believe that they have a scenario of an improving economic and demand outlook. A lot of things depend a lot on the outcome of the negotiations going in Tehran’s nuclear program.
China Mulling a Plan to Launch Crude Oil Futures
The increased demand for crude oil in China, the world’s largest energy consumer, prompting the country to envisage the ways that can help it and in that regard on Friday it took a step towards launching a market of its own for crude oil futures. The crude oil futures according to China will allow foreign investors to trade will be a major decision that will help the country and the region to a great extent.
In a statement state media and officials said that authorities and an existing exchange in Shanghai will set up a company to operate a trading platform. The location will be in the city’s new free-trade zone (FTZ); however, it will be separate from the financial hub’s stock exchange and futures exchanges, the report said.
In a press conference Yang Maijun, a top executive of the Shanghai Futures Exchange, said that his organization will launch it as soon as it gets approval. It will be China’s fifth futures exchange which will establish an international crude oil futures market that will allow wide participation of foreign investors and lift China’s position.
To contact the reporter of this story: Jonathan Millet at email@example.com