💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 1-Italy to propose European oil bourse

Published 02/01/2011, 11:24 AM
Updated 02/01/2011, 11:28 AM
CL
-

* Proposed EU oil bourse to trade physical delivery contracts

* EU oil bourse to help importers negotiate with producers

(Adds details)

MILAN, Feb 1 (Reuters) - Italy said on Tuesday it has drafted a plan for a regulated European oil bourse, part of Europe's efforts to rein in speculative trade and price volatility as commodities prices surge.

The project, to be presented soon to the European Energy Council, proposes a regulated EU market for trade in standardised long and very long term contracts with physical delivery in Europe, Italy's Industry Ministry said.

The EU oil bourse would be open to selected operators and run by a trusted central counterparty, the ministry said in a statement.

"The European oil bourse project aims to promote the transformation of the existing market of paper barrels into a market of real barrels ... a shield to rein in excessive price volatility and protect consumers," Alessandro Ortis, outgoing chairman of Italy's energy regulator AEEG said in the statement.

Brent crude futures traded above $100 a barrel on Tuesday as the market assessed the risk of Egypt's social unrest spreading to neighbouring OPEC members. [ID:nL3E7D107I]

The European oil bourse would help consumer countries in negotiations with producing countries, Industry Undersecretary Stefano Saglia said in the statement.

"We need ... to govern the market and not leave it to financial forces, the very ones that provoked the crisis, " Saglia said.

The statement made no specific reference to crude oil or refined oil products. (Reporting by Svetlana Kovalyova)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.