The municipality of Shanghai on Monday approved the establishment of an oil and natural gas trading center aimed at bolstering the city's influence in the global commodities market.

The trading center will be jointly funded by 10 Chinese companies and will be subject to the guidance and regulation of the country's top economic planner, the National Development and Reform Commission, the National Energy Agency and regulators of the commodity spot trading markets, according to a statement by Shanghai municipality, which was posted on its website.

Commodities, including oil, natural gas, liquid petroleum gas and unconventional resources such as shale gas will be traded at the center, the statement said.