OREANDA-NEWS. June 21, 2010. Ukrnafta <UNAF UK U/R>, the major oil producer in Ukraine, set the initial oil price for the upcoming auction at 4,290 UAH/t (74.27 USD /bbl, VAT incl.), 9.0% down from 4,690 UAH/t (81.12 USD /bbl, VAT incl.) at the previous auction, the Ukrainian Stock Exchange (UKRSE) reported June 18.  Ukrnafta will offer 219 kt of crude oil for sale at the coming auction.

Millennium Capital: the news is positive for Ukrnafta. Firstly, the initial price is higher than the Brent crude monthly average (73.82 USD /bbl). Secondly, the reduction in the offering price is perfectly justified, since the average monthly price of Brent crude on the international market declined by 5.4% throughout May 31 – June 18 period (from 78.03 to 73.82 USD /bbl).