OREANDA-NEWS.  December 25, 2013. ICBC has recently launched a new product across the country for customers to trade international crude oil via account through Internet Banking, Mobile Banking or Telephone Banking, the Bank said

The service is the first in China to trade International Crude Oil by referencing the price of Brent Crude Oil contract, which further expands channels and categories of crude oil trading for retail customers. In March this year, ICBC launched the first account-based North America Crude Oil trade product in China.

The service represents a new-type investment product targeted at ICBC personal customers to trade crude oil in RMB or USD in the form of shares rather than physical delivery. Depending on the quoted price, two types of crude oil are available: North America Crude Oil and International Crude Oil. Compared with the service launched in March this year for trading North America Crude Oil, the service for trading International Crude Oil refers to the price of Brent Crude Oil contract, which is international price. The price for North America Crude Oil refers to the price of West Texas Intermediate (WTI, also known as Texas Light Sweet), which is the crude oil price in North America and USA. Customers therefore have more flexibility to buy/sell crude oil based on their own criteria and preference.

The International Crude oil is available for sale in tranches. In each tranche, ICBC will inform the starting date, ending date for trading and the settlement date. Customers may buy/sell crude oil within the period between starting date and ending date. If customer has a balance of crude oil in the account on the ending date, ICBC will use the international market price on the ending date as reference to settle the crude oil for the customer. The starting trading amount and minimum increment are both 0.1 barrel. Customers can buy/sell crude oil via account, in real-time or placing order (valid for 120 hours longest) under "T+0" system, where crude oil shares bought can be sold on the same day, the amount gained after selling the crude oil shares can be used to buy again on the same day. Customers can buy/sell crude oil many times in a day.

Customers should go through the risk tolerance test and suitability test at ICBC outlet or online, before deciding to invest. Once completed, customers may open an account for trading crude oil, placing order or inquiry via Internet Banking or Telephone Banking. Currently, the hours for trading International Crude Oil are 9:00-24:00 (Monday), 0:00-3:00, 9:00-24:00 (Tuesday-Friday), 0:00-3:00 (Saturday).