REBCO futures launched on NYMEX

REBCO futures were launched on the New York Mercantile Exchange (NYMEX) on October 20, Deputy Economics Minister Kirill Androsov reported according to AK&M. The contract having RE-code implies FOB delivery of Russia's export blend crude oil from the port terminal in Primorsk. The contract volume is 1 thou barrels in USA dollars and cents per barrel. The new blend, a third crude brand to trade on the NYMEX, after WTI and Brent, will replace Urals as Russia's price index used for calculating supply prices, export duties and mineral extraction tax. It is expected to fetch a higher price than Urals, generally priced at a $5-6/bbl discount to Brent, as its quality is much nearer to Western standards. According to Kirill Androsov, Economics Ministry jointly with Expertica company and Russia’s oil companies have carried out preliminary work through 2006 resulting in agreements with the management of international exchange NYMEX as regards launching of REBCO futures. Successful launching and functioning of new futures is to facilitate implementation of the project on Russia’s Commodities and Raw Materials Exchange.