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Tokyo Commodity Exchange launches physical oil market
January 11, 2017 / 3:56 AM / a year ago

Tokyo Commodity Exchange launches physical oil market

TOKYO, Jan 11 (Reuters) - The Tokyo Commodity Exchange (TOCOM) on Wednesday launched a physical market for oil products including gasoline and kerosene, the first such contracts by a Japanese exchange.

The listed contracts will be gasoline, kerosene, gas oil, bunker A and low sulphur bunker A (LSA) for delivery by maritime shipment or at a refinery.

Main participants are oil refiners, trading houses and oil distributors, a TOCOM official said. Trade prices will be published on TOCOM’s website.

“Execution prices will be used to determine the settlement of cash-settled oil futures contracts slated for listing in May 2017 at TOCOM,” the exchange said.

“The Exchange expects the result to be a useful new price index and will contribute to reinvigorating the existing oil futures market.”

Physical contracts for oil products are currently traded in Singapore, which has traditionally served as a trading hub for oil markets in the Asian region.

Reporting by Osamu Tsukimori; additonal reporting by Jessica Jaganathan in SINGAPORE; Editing by Richard Pullin

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