Oil auction ends in profit for Ukrnafta

PJSC Ukrnafta sold 243.629 thousand tons of oil at the auctions held on Tuesday at the Ukrainian Energy Exchange (UEEX).

According to the data, the weighted average price was 8,868.95 UAH/ton (+ 8.3%) with a starting price of the resource of 8,192.12 UAH/ton (including VAT), Interfax reports.

Two lots were sold for 9 thousand 22.12 UAH/ton, 22 lots – for 8 thousand 902.12 UAH/ton, eight more lots – for 8 thousand 802.12 UAH/ton.

One of the market participants explained to the agency that the increase in the starting price was due to the readiness of the state-owned Ukrtransnafta to take part in the auction, competing with the structures of Privat group that control Kremenchuk refinery.

He recalled that the July oil auction was canceled due to the artificially lowered price of Ukrnafta resource due to the imperfection of Ukrainian legislation. Thus, Privat group in the spring, at the lowest prices, brought several oil tankers to Ukraine, put them in a customs-licensed warehouse and cleared them before each auction, forming the starting bid price in accordance with the current legislation.

“I think that the decision of Ukrtransnafta to take part in the bidding and buy oil at a higher than the starting price ultimately led to the purchase of oil by Privat structures at export parity,” the agency's source said.

Tags: oil, Ukrnafta, oil production, Kremenchuk refinery, oil companies, oil market

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