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Crude Oil (INE) Futures (SC)

The Shanghai crude oil futures contract (SC) is China's first commodity product fully open to foreign investors, giving you direct exposure to Asian energy demand priced in yuan. Since its launch, it has rapidly grown into one of the most heavily traded crude benchmarks on the planet, routinely rivaling WTI and Brent in daily volume. If you're a retail trader looking to diversify your energy plays or tap into the pulse of the world's largest oil importer, this contract deserves a spot on your radar.

Contract Specifications

Specifications are reference values compiled from exchange publications. Margins and price limits adjust dynamically — the exchange's latest announcements prevail.

What Moves Crude Oil (INE)

• Brent/Dubai crude benchmarks. SC is physically a Middle-East-sour crude contract, meaning it closely tracks the Dubai benchmark and Brent globally. Any geopolitical tension or supply shift affecting Middle Eastern heavy and sour grades will immediately ripple into SC pricing.
• RMB exchange rate. Because the contract is yuan-denominated but tracks a globally dollar-priced commodity, currency fluctuations between USD and RMB directly impact local pricing. A weakening yuan makes imported oil more expensive, often pushing SC prices higher relative to its dollar counterparts.
• Chinese refinery run rates and import quotas. The independent "teapot" refineries are massive consumers of this grade of crude. Shifts in their processing margins, run rates, or government-issued import quotas directly dictate domestic demand and physical inventory levels.
• OPEC+ supply decisions. Production cuts or increases by OPEC+ nations, particularly those exporting sour crude to Asia, set the baseline supply expectations. SC traders must monitor these policy meetings just as closely as WTI or Brent traders do.
• Strategic petroleum reserve activity. China's state stockpiling or releasing of strategic petroleum reserves creates sudden, massive swings in spot demand. Market rumors or official confirmations of reserve purchases or auctions can trigger sharp intraday volatility.

Why Traders Watch It

SC is China’s yuan-denominated oil contract, offering a unique blend of global macro and regional micro dynamics. While it broadly tracks Brent and Dubai, it adds a distinct China-demand twist that often creates localized pricing anomalies you simply won't see in Western benchmarks.

This is a heavy hitter. With a contract size of 1,000 barrels, a price of around ¥580/barrel puts the notional value at ¥580,000 (roughly $81,000) per lot. Even with the exchange margin sitting at a dynamic 10–12% (meaning you need about ¥64,000 or $8,900 per lot), the absolute tick value is ¥100 (about $14) per 0.1 yuan move.

Because of this sheer contract size, position sizing is critical. A few bad ticks can quickly drain an undercapitalized account, making SC better suited for traders who understand leverage and want exposure to Asian session liquidity. The 21:00–23:00 Beijing night session bridges the gap nicely for global retail traders, allowing you to manage exposure during active global hours without taking on full overnight gap risk.

What to Watch Out For

• Policy shocks and sudden interventions. Chinese commodity markets are subject to regulatory interventions aimed at cooling excessive speculation. Sudden changes to margin requirements or position limits can force rapid unwinds, so keep a close eye on exchange notices.
• Liquidity rotation across contract months. While all 12 months are listed, liquidity is heavily concentrated in the front month. Rolling positions too early or trading deep back months can result in massive slippage and wide bid-ask spreads.
• Overnight gap risk during night session. The 21:00–23:00 Beijing night session overlaps with European and early US market activity, but it closes before the most volatile US inventory report releases. Be prepared for gaps at the next day's open if major US data drops after the INE night session closes.
• Currency translation traps. If you are trading from a USD-funded account, you are carrying both crude oil and RMB/USD FX risk. A sudden spike in the dollar can eat into your commodity gains or exacerbate losses on a local level.

Trading SC on XS Select

All XS Select evaluations include SC and every other major Chinese commodity contract, on real Wenhua Finance market data with institutional liquidity. Commission is 2x the exchange standard (open and close) — replicating professional conditions.