SPIMEX Arranged a Round Table at REW-2018 Devoted to Pricing Mechanisms in the Global Crude Oil Market


On 4 October 2018, the round table on ‘The Latest Developments in the Field of Crude Oil Pricing in the Global Petroleum Markets: New Benchmarks, Settlement Currencies and Settlement Techniques’ was held in Moscow at the Russian Energy Week 2018 (REW-2018). For the second year in a row the event was arranged by the Saint Petersburg International Mercantile Exchange (SPIMEX). 

The participants focused on the global crude oil pricing systems and creation of new benchmarks and noted that the use of exchange-traded contracts for this purpose is regarded by many experts as the most market-oriented approach. In particular, they discussed potential changes to the current list of pricing benchmarks, new trading techniques and a rise of digital platforms including blockchain. Special attention was paid to the potential for setting an outright price for the Russian exported crude oil.

The speakers included Pavel Sorokin, Deputy Energy Minister of Russia; Anatoly Golomolzin, Deputy Head of the Federal Antimonopoly Service of Russia (FAS); Kirill Molodtsov, aide to the Chief of Staff of the Presidential Executive Office of Russia; Alexey Rybnikov, SPIMEX President; Sergey Andronov, Vice President, Transneft; Denis Maximov, Deputy Director General, Zarubezhneft; Mark Quartermain, Vice President, Shell International Trading and Shipping Company Limited; Matthew Thompson, Chief Strategy and Business Development Officer, Argus; Joel Hanley, Editorial Director, European & African Oil, S&P Global Platts; Owain Johnson, Managing Director, Energy Research and Product Development, CME Group; Murat Seitnepesov, Managing Director, Integral Petroleum S.A., representatives of Russian and overseas oil companies, physical traders and market infrastructures companies. 

The round table was moderated by Elena Telegina, corresponding member of the Russian Academy of Sciences, Dean of the Faculty of International Energy Business, Doctor of Economics, Professor at Gubkin University, Moscow.

Elena Telegina said: ‘Restructuring of the pricing system for our key export commodity – crude oil – gains in importance. This fact attaches additional significance to our discussion at REW-2018, a major event for the industry. We expect that today’s discussion will give an impetus to on-exchange trading in Russian crude oil and contribute to creation of a more adequate pricing of it”.  

After the round table SPIMEX and S&P Global Platts, a division of S&P Global, signed a memorandum of understanding (MoU) under which the parties agreed to work on the development of pricing mechanisms for exported Russian crude oil including the formation of independent and representative price indicators that will be instrumental in the pricing of Russian crude in world markets.

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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