Thinking Of The Development Of Oil Futures Trading In China

Oil is the "blood" of modern industry. With the further fast process of industrialization we imported more and more oil from abroad, sudden rise and sharp fall in the world oil price has brought adverse effects on the stable growth of our economy. How to comply with the rule of market economy and learn from other country's experience to do the work of importing oil well is an urgent subject worthy to be researched.For the moment the advanced countries often reduce the risk of oil price volatility by conducting oil futures trade. The basic theory is that the businessman conducts converse deals in both spot market and futures market so that the earnings in one market can make up for the losses in the other market. However, the situation of conducting oil futures trade in our country is now not ideal, which mainly shows that on the one hand there is not the commodity of oil futures in our futures market, on the other hand, there are only a few enterprises to conduct oil futures trade in overseas market. The main reasons are that the oil spot market is dominated by CNPC and SINOPEC, oil pricing mechanism is not transparent and oil enterprises are not familiar with the rule of overseas oil futures market.But three years after china's entry into WTO, the rule for china's oil market will be changed greatly, foreign oil enterprises would be allowed to enter into china's oil market, the monopoly would be broken and price would be produced by the market. In addition, with the improvement of national policies and regulations the behavior of over-speculation in futures market has been obviously restrained, therefore the condition of developing oil futures trade in china becomes mature. In order to fasten the development of our oil futures trade we can take the following countermeasures: Firstly, we should break the monopoly so as to improve the spot market environment for the development of oil futures. Secondly, we should transform the managing mechanism of our oil enterprises to let them become the real market owner. Thirdly, we should amend relative national policies to remove the policy barriers that restrain the development of our oil futures trade. Finally, according to the mature level of our oil products we develop and improve our oil futures system gradually in an order offuel-gasoline-crude oil so as to help our oil enterprises to avoid oil price risk and to safeguard the stable growth of our national economy.