Thursday, July 29, 2010

Experts say low oil prices on the Ukrainian auctions

Monday, August 31, 2009, 15:11
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Leading Ukrainian energy experts say low oil prices, which sold at auction at the Ukrainian Interbank Currency birzhe.Tak, according to former director of the department of oil, gas and petrochemical industry of the Ministry of Fuel and Energy of Ukraine, Leonid Kosyanchuk, the Ukrainian oil at auction August 26 was sold at a price that is more than four times lower than any other variety that is available for delivery in Ukraine.

Vendors sustained a loss of 26 August an average of 900 million UAH. income. Buyers, respectively, the same amount saved, or rather earned through the acquisition of data volumes, - he said.
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L. Kosyanchuk reminded that oil from the beginning of 2009, steadily increasing in price (from 35 to more than $ 70 per bbl.) Meanwhile, Ukrainian high quality raw materials such as care and leaves the auction at the same price.
According to Deputy Director of the Scientific-Technical Center Psyche Gennady Ryabtseva, of course, that the price of oil to the Ukrainian auctions in three, if not more, times less than Russia's oil than the exchange price of oil in New York and London. This is understandable, since the auctions we have long ago are not indicators of the price of oil and petroleum products.

He noted that the low auction price of Ukrainian raw materials is not only a consequence of the actions of a single seller of oil. This is a consequence of a general policy in the oil sector, which is not balanced, which is not focused and not take into account the rights of consumers, and focuses primarily on the large property owners, large companies, - he said.
In turn, as the director of the consulting group A-95 Sergey Kujun, price target for the Ukrainian oil for delivery in September of 5220 UAH per ton. According to him, in August of Russia's oil price of Urals, the main raw material indicative of the Ukrainian market of oil for delivery in Ukraine amounted to an average of $ 500 per ton (about $ 68 per bbl.).

He added that the Ukrainian oil much higher quality of Russia, because it contains a greater amount of light oil, and the prize at a world oil market is about $ 2 a barrel. or $ 15 per ton.

favorable market conditions in the world oil market, which determines the high value of the Ukrainian oil, can substantially improve the financial position of oil producers in Ukraine, were fixed on the end of the first half of the losses, - he added.

As reported, the weighted average selling price of Ukrainian oil August 26 auctioned at number 132 on the UICE increased by 1%, or 12,86 grn. per ton, compared with the previous auction number 131 of July 23 (1251.81 grn. per ton) - up to UAH 1,264.67. per ton (including VAT). At the auction were sold 208 thousand 630.519 tons of oil worth 263 million 849 thousand UAH 661.95.

recall, the Ministry of Economy of Ukraine has drafted a decree of the Cabinet of Ministers, which proposed to ban auctions of oil and gas condensate, and liquefied natural gas, coal and sell raw materials at prices that are more than 5% different from the world.

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