SPIMEX Urals Crude Futures – Contract Description

SPIMEX Urals Crude Deliverable Futures

A new oil pricing mechanism exists in the form of the deliverable SPIMEX Urals Crude Futures contract. It allows -to set a direct quotation for exported Russian oil without reference to other crude oil grades traded in the global energy markets.

Transparent price discovery process is based on exchange-traded futures contract which reflects supply and demand equilibrium. Such equilibrium is the result of a large number of trades concluded on the exchange by a wide range of market participants thus setting an arm’s length price for the relevant commodity.

In this field, SPIMEX cooperates with the Ministry of Energy of the Russian Federation, the Federal Antimonopoly Service of Russia, the Bank of Russia and key Russian oil producers. The delivarable SPIMEX Urals Crude Futures contract was launched on 29 November 2016.

Access to the SPIMEX futures contract trades is granted to Russian and foreign legal entities and to Russian individual entrepreneurs as well. Only legal entities (both Russian residents and non-residents) are able to conduct physical deliveries of crude oil.

The SPIMEX Urals Crude Futures contract is settled by physical delivery upon expiration. Such a futures contract has a direct link with the crude oil spot market and prevents price manipulation. Physical delivery of crude oil under the contract is effected against positions opened as of the relevant contract expiration date.

Terms and conditions of the physical delivery are set out by SPIMEX along with key Russian oil producers in line with the current market practice. Crude oil under the futures contract is delivered on FOB Primorsk basis by standard deliveries, each equal to 720,000 bbls (approx. 100,000 mt, i.e. a full cargo).

Contract Description

URALS-PRIMORSK SPIMEX Urals Crude Deliverable Futures
(FOB Primorsk)
Settlement method: Deliverable
Product Symbol: U
Underlying asset: Russian export URALS grade crude oil
Hub Name: Primorsk
Currency: US Dollars and cents
Contract Size: 1,000 bbls
Standard Delivery: 720,000 bbls
Min Price Flux (per barrel): USD 0.01
Min Price Flux (per contract): USD 10
Last Trading Day: 21 days prior to the first calendar day of the delivery month – for real life monthly futures.
Delivery Period: Delivery Month
Delivery Price: Final Settlement Price of the futures contract set on the Last Trading Day.
Performance Procedure: The parties enter into Physical Contracts at the SPIMEX Derivatives Market on the terms and conditions and under the procedure set forth in the relevant Contract Specifications, the Trading Rules and the in-house regulations of the Clearing House.

Full list of English translations of all exchange’s documents:

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