Open interest in gasoil futures grows 3.5 times

During the first two trading days, participants made l 64 trades in total for a trading volume of 507 contracts. The total volume for two days in money terms exceeded RUB9 million (USD308.2 thousand). The open interest grew more than 3.5 times and by close of the evening trading session on April 19, 220 contracts had been traded. The open interest growth demonstrates the increase of producers, consumers and medium-term investors’ of oil products interest towards the market.
On April 19, 2010 the settlement price for the gasoil futures contract with settlement in June (DS-6.10) stood at 17,310 rubles per ton.
The most active brokers in gasoil futures trading were OLMA Investment Firm, ALOR INVEST Ltd, JSC "Piter Trust Investment Company", Solid, JSC "Investment Company "ITInvest" and their clients being oil and fuel companies. Among the brokers’ clients the most active company was Novotek-Trading.
Futures contracts on summer-grade gasoil allow fuel market participants – oil and oil products producers and customers – to hedge against negative movements in summer-grade gasoil prices.
In accordance with the current Russian tax legislation, hedging expenses are charged with the prime cost of the finished product.