At present, there are four important crude oil contracts in the world, namely, the New York Mercantile Exchange's light low-sulfur crude oil contract and high-sulfur crude oil futures contract, London International Petroleum Exchange's Brent crude oil futures and Singapore Exchange's Dubai acid crude oil futures. The introduction of China crude oil futures will win China a place in the global crude oil price.
In addition to enhancing the right to speak about crude oil prices and providing hedging tools, the listing of crude oil futures will also promote the further internationalization of commodities in China, and the listing of crude oil futures will consider introducing foreign investors. The Regulation on the Administration of Futures Trading adds the provision that "qualified overseas institutions can engage in futures trading of specific varieties on futures exchanges", paving the way for the introduction of crude oil futures to foreign investors.
In short, the listing of crude oil futures shoulders more significance than all previous commodities. The introduction of foreign investors will create an important global crude oil pricing center. With the determination of crude oil futures settlement mechanism, it will also promote the reform of China's financial mechanism and open the door for China to further enter the international market.