OREANDA-NEWS. September 27, 2010. At the first phase, the system is to work with only two types of contracts: deliverable futures for summer diesel fuel and Regular-92 petrol, produced by Moscow, Nizhny Novgorod, Ryazan, Yaroslavl and Samara oil refineries. The contract price is to be linked to the Vladimir railroad terminal, while the delivery price should equal the real dispatch base price adjusted to transportation costs.

Deliverable futures are to enable oil companies to plan future production rates, sales and financial flows more efficiently, while consumers, i.e. government, industrial and agricultural enterprises should get a chance to hedge risks related to fluctuations in wholesale oil product prices.

The launch of the trade in deliverable futures in the SPbCE derivatives market was made possible by the successful development of the spot exchange market, where trade turnover has exceeded 4 mn tons during the last 2 years, topping RUB 137.1 bn in monetary terms. Overt the period, the exchange’s Oil Product section saw more than 5800 deals with real commodity. Daily oil product turnover on the SPbCE reaches 50 000 – 70 000 tons.