The Research Of Formation Mechanism Of Crude Oil Futures Benchmark Price In Shanghai Free Trade Zone

As one of the most important commodities, the fluctuation of crude oil prices directly relates to a country’s energy security and economic security. At present, China is the world’s largest net importer of crude oil with the import dependency close to 60%. However, the cost to import crude oil for China has grown fast and stays high due to the lack of pricing power. Reviewing the historical evolution of international crude oil pricing mechanism, the principal pattern of supplier pricing which used to be has changed to futures pricing. Europe and America still center in pricing the global crude oil as a result of their completed spot market and favorable financial environment. Although Japan and Singapore have launched the crude oil futures, the influence is far less than Europe and America. In order to get access to the crude oil pricing, China is actively preparing to establish the crude oil futures market under the general rules of international. The author of this thesis makes analysis on launching crude oil futures market in Shanghai Free Trade Zone by the method of SWOT. Based on past experience and learning from failures from foreign crude oil futures exchanges, combined with the reality in China, the author proposes to improve the corresponding supporting systems and regulations,expects to realize the influence of Chinese crude oil price in the world, and then enhances the welfare effects of Chinese economy.This thesis is divided into three parts. PartⅠintroduces the historical evolution of global crude oil pricing benchmark and the importance of pricing power to a country’s economic development. Part Ⅱ analyses the pricing patterns of foreign crude oil futures exchanges and compares them with each other. Part Ⅲ makes analysis of launching crude oil futures market in Shanghai Free Trade Zone using the SWOT method and proposes the corresponding supporting systems and regulations.