First Vice President of SPIMEX Addressed the Argus China and Global Oil 2018 Conference in Beijing


First Vice President of SPIMEX Mikhail Temnichenko presented his report ‘SPIMEX: Russian crude - from West to East’ to the participants to the Argus China and Global Oil 2018 conference held in Beijing on 28 March 2018. The presentation was devoted to growth options of Saint Petersburg International Mercantile Exchange in the global markets.

Mr Temnichenko focused on the physically-settled SPIMEX Urals Crude Futures (FOB Primorsk), a strategic project of the exchange. In his opinion, the fact that the Urals is an intermediate medium blend exported in large volumes means that it is the most convenient and representative grade in the global oil market. 

Since the launch at the end of 2016, the market of the SPIMEX Urals Crude Futures has accumulated initial liquidity, was joined by market-makers from amongst the Russian oil majors and a number of trading participants including overseas companies. In 2016-2017, the total turnover amounted to USD 220 mn and the overall traded volume was equal to 4.3 mmbbls. The exchange is working on arrangement of test physical delivery of Urals from the Baltic port of Primorsk. Trades in the SPIMEX Urals Crude Futures are to become a new option for overseas buyers to get access to Russian exported crude oil. 

First Vice President of SPIMEX highly appreciated memoranda of understanding signed in January 2018 by SPIMEX first with the Shanghai Petroleum and Natural Gas Exchange (SHPGX) and then with the Shanghai OTC Commodity Derivatives Association (SOCDA). The documents were executed during a business visit to China of a Russian delegation which included SPIMEX officials.

The parties to the documents plan to provide access to trades at SPIMEX for Chinese investors that operate both in the physical energy market and in the financial markets. Special attention is paid to further development of exchange trading infrastructures both in Russia and China.

Mr Temnichenko also announced that in 2018 SPIMEX plans to launch two brand-new products: SPIMEX ULSD Futures (FOB Primorsk) for ultra-low-sulphur diesel and SPIMEX ESPO Crude Futures (FOB Kozmino) for East Siberia - Pacific Ocean Russian export crude oil blend. The first one is intended for NWE markets, while the second will focus on Asia/Pacific. First Vice President of SPIMEX briefly outlined new opportunities that will offer the new physically-settled futures contracts to the buyers of Russian exported crude oil and refined products in EU and in Asia/Pacific.   

Saint Petersburg International Mercantile Exchange (SPIMEX) is the largest Russian commodity exchange which offers a wide range of products traded both in its Commodities Sections (refined products, crude oil, natural gas, LPG, timber and construction materials) and in its Derivatives Section. The Exchange’s key task is operating a transparent price formation mechanism to ensure fair prices for the commodities produced in Russia. SPIMEX was incorporated in 2008.


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