China's Shanghai Petroleum Exchange (SPEX) begins operations on August 18, after nearly two months of trial operation.

The exchange will start from the trading of fuel oil, one of the most marketed oil products in China, before expanding into trading of other oil items.

During the trial operation period, which started on June 21, participants of the exchange traded 4.85 million lots, totaling 48.5 million tons of fuel oil.

The exchange will launch two 180CST fuel oil contracts and a 380CST one for trading, with downstream buyers mainly power companies and industrial customers.

The co-investors of the SPEX are CNPC, Sinopec Group, CNOOC Group, Sinochem and the local government-supported Jiulian Group.

(Xinhua News Agency August 18, 2006)