Prospects of oil exchange trading discussed during REW 2017

5 October, Moscow. – The roundtable ‘Developing Exchange Trading in Russian Oil’ was held on the sidelines of Russian Energy Week.

The event was attended by Deputy Minister of Energy of the Russian Federation Kirill Molodtsov, Shell Trading International Vice President for Crude Trading and Supply Michael Muller, Transneft Vice President Sergey Andronov, Eni SpA Trading & Shipping Vice President Jorge Montepeque, Deputy Director of the Russian Federal Antimonopoly Service Anatoly Golomolzin, Argus Director for Russia and FSU Vyacheslav Mischenko, Director of the Tax and Customs Policy Department of the Ministry of Finance of the Russian Federation Alexey Sazanov, SPIMEX President and Chairman of the Board Alexey Rybnikov, VTB Capital Head of Operations on Global Commodities Markets Atanas Djumaliev, Settlement Depository Company General Director Larisa Azimova, and Zarubezhneft Head of the Oil Supply Directorate Kirill Akatnov. The roundtable was moderated by Head of the Research and Forecasting Group at Analytical Credit Rating Agency Natalya Porokhova.

The experts concluded that pricing should be improved by forming new price standards based on more stable production volumes and the qualitative attributes of oil flows.

Kirill Molodtsov noted that the Russian commodity and raw materials exchange launched trading in deliverable futures for URALS oil in November 2016. “The product is intended for market makers, suppliers, consumers, and traders – for those who earn money from the sale of futures and other derivatives”, Molodtsov said. According to his estimates, the result will be a civilized market with a commodity-secured product.

“The initiative to build our own benchmark has been successfully launched, but more work is needed to implement the functioning exchange infrastructure”, VTB Capital Head of Operations on Global Commodities Markets Atanas Djumaliev said.