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Russian oil company JSC “Tatneft” for the first time sold refined products via the online auction platform of the Saint Petersburg International Mercantile Exchange (SPIMEX).
During the auction procedure held by the company on September 25 on the e-platform of SPIMEX, the company sold two cargoes of fuel produced by TANEKO refinery of 60 000 tons each.
Tatneft has been using tender services offered by SPIMEX since December 2019, all of which have been held in a closed bid request mode only.
Adding a second open bidding stage to the standard trading procedure toughened competition among auction participants: 44 steps were made in the course of the auction to increase the price of “Export technological fuel oil” and 6 steps – of “Marine Fuel Oil, RMD 80”. The online auction element significantly enhanced the price level achieved at the first stage of the tender, raising the overall efficiency of the sales procedure for the refined products.
Tatneft plans to continue the practice. The company has launched another sales procedure, which will also have an online auction stage.
Price formation for physical refined products cargoes at electronic auctions and based on real transactions’ data is an important step in the development of a pricing system in the global petroleum market, where Russia is one of the key participants.
JSC “Tatneft” is one of the largest Russian vertically integrated oil companies, which dynamically develops oil and gas production, oil refining, petrochemicals, a tire complex, a network of filling stations, power engineering, development and production of equipment for the oil and gas industry and a block of service structures.
Tatneft is a stakeholder of companies in the financial (banking and insurance) sector. The company’s official website: https://www.tatneft.ru/.
The Saint Petersburg International Mercantile Exchange (SPIMEX) is Russia’s largest commodity exchange offering a wide range of products traded both in its Commodities Section (refined oil products, crude oil, natural gas, LPG, timber and construction materials, fertilizers) and in its Derivatives Section. The Exchange’s key task is to operate a transparent, fair and efficient price formation mechanism for Russian commodities. SPIMEX was founded in 2008.
