ADVERTISEMENT

Russia: St. Petersburg bourse selected as trading floor for oil products

Analysis

A tender commission from Russia’s economics ministry has selected the St. Petersburg exchange as the trading floor for crude derivatives, a deputy minister said on Wednesday.

“Opinions differed, but the St. Petersburg exchange has been chosen by a majority,” Kirill Androsov said. Russian President Vladimir Putin said in his state of the nation address to parliament last year that Russia, as a leading oil exporting nation, should establish its own oil exchange to trade crude and petroleum products in rubles. The economics ministry said in June that trading in the Russian Export Blend Crude Oil (REBCO) futures would move from the New York Mercantile Exchange (NYMEX) to a new commodity market in St. Petersburg. “Trading in the REBCO futures will move to St. Petersburg as soon as we register the new commodity exchange,” Androsov said.

The new blend, the third crude brand currently trading on the NYMEX, after WTI and Brent, is expected to replace Urals as Russia’s price index used for calculating supply prices, export duties and mineral extraction tax. REBCO is expected to fetch a higher price than Urals, generally priced at a $5-6/bbl discount to Brent, as its quality is much nearer to Western standards. (rian.ru)

ADVERTISEMENT

Manufacturing Purchasing Managers' Index rises Analysis

Manufacturing Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

Magyar Bankholding chairman to serve as CEO as well Appointments

Magyar Bankholding chairman to serve as CEO as well

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.