Research On The Listing Of Crude Oil Futures In China

In recent years, each country of the whole world has strong demand for crude oil, but due to the shortage of crude oil, the price of oil rises and stays in a high level, with the tendency of keeping on high level. With the increasing consumption and importing of crude oil in China, and due to the lack of pricing right in crude oil, the exporting price is lower than the importing price, which made our country suffer great economic losses. Thus, China should follow the experience of the developed country and build upon its successful experience in fuel oil futures to accelerating the listing of crude oil futures and increasing China's input in oil product pricing in the global market.Section 1 is introductory part. Topical background, literature summarizes, and research method and approach will be briefly introduced.Section 2 is the necessary analysis of developing crude oil futures in China. First of all, this section analyzes China's oil foreign trade and why the exporting price is lower than the importing price, the essential reason lies in that our country has not the"pricing power". Secondly, after analyzing the high price of the crude oil in the world and the losses that our country suffers during the tremendous fluctuations of the crude oil price, we concludes our country needs crude oil futures market to avoid price risk.Section 3 briefly introduces the existing oil futures market in the world and it's enlightenments to our country.Section 4 is the market fundamental analysis of developing crude oil futures in China. First of all, this section uses interrelated analysis, unit root test, co-integration test, error correction model and variance decomposition method to research the price discovery function of fuel oil futures market in Shanghai Futures Exchange and the relationship between the native fuel oil futures and national oil futures. The outcome of the research manifests that the price discovery function and the hedging effects of the fuel oil futures are good; the futures price of the fuel oil in Shanghai Futures Exchange is increasingly linked with the oil price in the foreign country; and"Chinese price and standard"for fuel oil that is increasingly being recognized in the global market. Thus, this situation makes a good foundation for establishing crude oil futures market in China. Secondly, this section analyses the circumstances of the microstructure, the futures market, and legal circumstances, after that we make a conclusion that the conditions for building the crude oil futures market has met.Section 5 expresses the problems we should pay attention to during the listing of crude oil futures in China. And the improvement of the risk control and management of our crude oil futures market is put forward to in regard with these problems.