Argus Media conference brought together key players of the oil products market
Argus held its ninth international conference Argus Oil Products 2016 on 25-27 May in St. Petersburg. This is a key event for the market players, which brings together oil products producers, importers, exporters, traders and international carriers.
This year the conference was supported by Inspectorate – R (Bureau Veritas Group Company), Turkmen Petroleum and Komus.
Almost 100 participants from Russia, Turkmenistan, Ukraine, Latvia, Lithuania, Germany, UK and other countries discussed the current situation on the global and Russian oil products market.
The speakers included representatives of the leading Russian and international companies such as LUKOIL, Gazprom Neft, Turkmen Petroleum, Inspectorate – R (Bureau Veritas Group Company), Petromarket, VK Expedicija, Petroleum Trading, PwC, Ukrainian Energy Exchange.
On the first conference day, the delegates took part in the opening ceremony for the state-of-the-art laboratory facility of Inspectorate – R (Bureau Veritas Group Company) built in Ust-Luga seaport. Participants got to know the capabilities of the testing laboratory furnished with modern equipment, which allows testing the quality of crude, gas condensate, liquefied petroleum gas, oil refining products and petrochemicals with a high precision and reliability. The management of Inspectorate – R (Bureau Veritas Group Company) spoke on the prospects for further development of the oil, gas and chemical laboratory infrastructure in Ust-Luga seaport and opportunities for mutually beneficial cooperation.
On the second day, participants discussed the current situation in the Russian and global oil refining industry as well as taxation matters and oil products export.
Svetlana Stroykova, Partner, Transfer Pricing, PwC tax practice, touched upon the interaction of the oil market players with the Russian authorities regarding the transfer pricing matters. When using tax assessments published by price reporting agencies, government authorities pay particular attention to how much independent parties rely on these assessments in making contracts. She stressed that Russian authorities recognise Argus data as a reliable pricing source on the oil market.
Participants showed a keen interest in the presentation given by Yakov Ruderman, General Director of Petromarket Research Group, who presented a forecast of supply and demand on the Russian product market. Given the ongoing commissioning of new refining capacities and upgrading of the existing ones in Russia, Petromarket expects some extra yield of gasoline and diesel fuel, which is set to find consumers both in Russia and on the international market.
During the session dedicated to the export sales, Argus representative shared his expectations regarding the changes in supply and demand balance on the international oil product market and redistribution of the global trade flows. A delegate from VK Ekspedicija spoke on the prospects for the oil products transit via terminals located in the Baltic countries. When discussing oil product markets of the neighboring states, participants exchanged opinions on the expected increase in the Russian diesel sales to the Ukrainian market as the product pipeline supplies are going to be resumed.
“The middle distillates market in a tightening of tax in 2016” round table saw a heated discussion between the representatives of the vertically integrated oil companies and independent participants of the oil product market on whether it is advisable to introduce additional legislative measures to counter sales of low-quality non-marketable motor fuel to Russian consumers.
The second conference day was closed with Reception cocktail.
The third day was dedicated to the discussion of the changes that have occurred on the motor fuel market and its development prospects in the Russian regions.
Anatoly Kondurtsev, Vice President of Oil Club of St. Petersburg, gave a report on how St. Petersburg oil terminals are supplied with fuel. He said that liquidity of the regional diesel market has increased after more companies got interested in storing their pipeline volumes in the Krasny Bor storage facility. However, this caused a great extension of delivery dates for the exchange-traded volumes of the fuel shipped to this oil terminal.
Next conference Argus Oil Products (Russia and CIS) will be held in 2017.
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