Mideast oil to trade through Shanghai crude futures contract

Mideast oil to trade through Shanghai crude futures contract:

Five companies will deliver Middle East crude next month to buyers through the Shanghai International Energy Exchange’s (INE) oil futures, the first physical settlement of the contract that China hopes will compete with global benchmarks.

The companies, including state-owned Unipec and Zhenhua Oil, will deliver a combined 600,00 barrels of crude to buyers of the INE’s September crude futures contract, said five sources with knowledge of the matter.

The INE launched the contract in March with September as the first month of delivery to give participants time to accumulate supplies for the physical delivery and for the contract to develop.