The certificate of deposit of crude oil and gas condensate was announced – Tejaratnews
According to Tejarat News, with the announcement of the opening of gas condensate and crude oil storage; The first currency instrument of the capital market will start working soon. The buyer of oil in this market, by receiving the oil deposit certificate, can directly receive his oil from the National Iranian Oil Company whenever he wants in a certain period of time.
The CEO of the Energy Exchange announced the release of the crude oil and gas condensate deposit certificate, this certificate has been placed on the agenda within the framework of the Iran Energy Exchange and Capital Market regulations and has gone through its final stages. Also, after that, the CEO of National Iranian Oil Company also announced the launch of oil and gas condensate deposit certificate trading in the energy exchange, and according to the announcement of the capital market news site, the announcement of the acceptance and opening of the South Pars warehouse for the gas condensate deposit certificate. And also the Khark warehouse was published for the heavy crude oil deposit certificate.
What is the certificate of deposit of crude oil and gas condensate?
The certificate of deposit of crude oil and gas condensate is a new asset in Iran’s economic system for private sector activists, which is offered and traded in the energy exchange. Each certificate is equivalent to one barrel of crude oil or gas condensate, and its holder can deliver it to the National Iranian Oil Company if the number of certificates reaches a certain amount, and in return, oil, if the holder of this certificate is willing, It can receive crude oil and gas condensate (in physical form) subject to reaching the deliverable volume in the warehouse of the National Oil Company.
The buyer of oil in this market, by receiving the oil deposit certificate, can directly receive his oil from the National Iranian Oil Company whenever he wants in a certain period of time. This certificate will have significant volatility and attractiveness for professional investment due to its dependence on the global price of oil. Professional investors can use this certificate to benefit from fluctuations in the global oil market. Oil deposit certificate can be used as collateral and guarantee of projects in the banking network. One of the advantages of this plan is the accessibility of domestic and foreign customers directly and without intermediaries, through the stock exchange channel, in both currency and rial.
In the future, the oil deposit certificate project can be considered as a platform for the creation of oil currency, as an attractive and supported cryptocurrency. Also, the definition of a new class of assets for investment is one of the results of this project.
What is the difference between oil deposit certificate and oil opening plan?
According to Naqvi’s explanations to the capital market information base, the first difference between the oil deposit certificate and the oil opening plan proposed by the 12th government is that the oil deposit certificate is a standard and transparent instrument for sale, which is based on the oil in the tanks or warehouses of the national company. Oil is released and is a definitive sale of oil and has no maturity date, while standard parallel forward bonds are issued based on forward contracts and are done to finance projects within the framework of pre-sale of oil at a specific maturity in the future.
Promissory notes are considered one of the financing tools and cause obligations for the publisher, whose volume and amount of publication can have consequences for fulfilling obligations in the future.
He mentioned the guarantee of the delivery of the base asset as the second major difference between the crude oil deposit certificate and the oil futures and said: the crude oil deposit certificate is delivered according to the conditions published in the warehouse opening notice and the persons who have a certain amount of certificates in have the authority, they submit their delivery request to the National Oil Company and proceed with the delivery. Also, the National Iranian Oil Company has created this capability for other persons who are not able to deliver in the form of creating a consortium of this company to represent the process certificate holders. make the delivery and there is no possibility of cash settlement for this financial instrument, but in standard parallel forward contracts, it is possible to exercise the option to buy or sell and settle based on the option rate.
The CEO of Iran Energy Exchange has also stated the third difference regarding the difference in the type of potential buyers of these two plans: the main buyers of the standard parallel forward contracts are financial institutions from investment funds and capital supply companies, but in the certificate of deposit, oil and oil products field activists and investors Financial markets are present.
Pointing out that the certificate of deposit does not have a guaranteed interest, Naqvi explained the fourth difference as follows: In the previous plan, a minimum amount of interest was supposed to be guaranteed for bond buyers. But certificates are not like that and investors can decide to buy or sell certificates on a daily basis according to crude oil prices.
Source:ISNA