Is the energy exchange the pricing hub of the region?

According to Tejarat News, the energy exchange was supposed to become the oil, gas and gasoline pricing hub of the region due to future appointments. However, the budget deduction report of the Court of Accounts of the country shows that about 9% of the forecast of oil sales in the first two months of the year has not been realized; This means not using the potential of the energy exchange.

It was on March 18 of last year that the futures contract board started working in the energy exchange. At the opening ceremony of this contract, Ali Naqvi, CEO of Energy, said: The necessary planning for the deepening and development of this instrument is on the agenda of the Iran Energy Exchange, including the calculation of collateral and customer risk management by the clearinghouse through available accounts. which we will see soon due to the development view and the cooperation of the CEO and the cooperation of the depository company.

He continued: increasing the number of brokers involved in these transactions, publishing futures contracts on other basic assets such as liquid gas, gas condensates and other energy carriers, publishing futures contracts with the possibility of pricing in foreign currency and settlement in Riyal as well as full currency settlement. Issuing futures contracts with a 100% model leading to delivery for domestic producers, pursuing the launch of investment funds based on futures contracts in order to manage the risk of retail investors, cooperating with large supplier companies in order to use futures contracts in formulas Gradual pricing, the development of transnational cooperation in the framework of export development, and the implementation of other derivative instruments.

The use of futures in the energy exchange

In general, futures help the performance of the stock market and the sale of petroleum products. But in the current situation, these contracts could not be used much and were only known as contracts.

According to the budget deduction report of the Court of Accounts of the country, the amount of oil revenues did not progress according to the budget forecasts and the government appeared to be unable to sell oil. Of course, the energy exchange tool was supposed to be used for the sale of more oil and its derivatives, and the income report reports that the energy exchange is not used.

Ali Naqvi spoke several times in the past months about turning the energy exchange into a spot pricing hub, but this issue has not yet been implemented and we have to wait and see if this exchange can play a role in the region or not?