FAS AND THE MINISTRY OF ENERGY HAVE STABILIZED THE SITUATION IN THE OIL AND PETROLEUM PRODUCTS MARKET
The challenges of 2020 required operational decisions
Head of the Department for Regulation over Fuel-and-Energy Complex and Chemical Industry of the FAS Russia Armen Khanyan spoke at the V Annual International Forum “Exchange Commodity Market”.
He noted that the pandemic of the new coronavirus infection COVID-19 adjusted the economic situation in the country, however, two agencies managed to stabilize the situation in the oil and petroleum products market and prevent the stagnation of the oil refining industry through joint operational efforts.
“In collaboration with the Russian Ministry of Energy, we managed to maintain the balance of supply and demand, and a significant increase in the consumption of petroleum products by the middle of this year pushed us to make a decision to increase the mandatory minimum volumes of sales of petroleum products at stock exchanges,” Armen Khanyan stressed.
According to the speaker, to facilitate further growth of economy the FAS Russia is planning to systematize the rules of participation on the stock exchange, to establish responsibility for compliance with the uniformity and regularity of the sale of petroleum products, which will help to align the volatility in price fluctuations.
“We (the FAS and the Ministry of Energy) have set the task ourselves to integrate the instruments of the derivatives market into the joint order. They should be encouraged and instilled in market participants, as they allow them to effectively plan and hedge risks,” Armen Khanyan concluded.
The forum was organized by the St. Petersburg International Mercantile Exchange (SPIMEX). The event was held in an online format and combined discussions in 7 areas: petroleum products, oil, gas, timber, mineral fertilizers, coal, financial instruments.
The event was also attended by representatives of the Ministry of Energy of Russia, Ministry of Natural Resources of Russia, Bank of Russia, Federal Assembly of the Russian Federation, regional authorities, heads of Russian and foreign companies-participants of the commodity markets.