Royal Decree approves amended regulation for oil derivatives’ pricing

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(Photo: Freepik)
AMMAN — A Royal Decree issued on Wednesday approved an amended regulation for the pricing of oil derivatives, the Jordan News Agency, Petra, reported. اضافة اعلان

Previously, the government priced oil derivatives locally according to the S&P Global Commodity Insights, Platts, on the Singapore and Mediterranean stock exchange price. However, companies were importing oil derivatives for cheaper from Gulf markets.

Under the amended regulation, Arab Gulf markets will be added to the Singapore and the Mediterranean markets for oil derivative imports, giving importing companies marketing flexibility. This will allow them to get the lowest prices, according to Platts.

The S&P Global Commodity Insights used to depend only on Singapore and Mediterranean markets before amending the regulation.

Economist and expert in oil and energy affairs Amer Al-Showbaki explained in a post on Facebook that the amendment favors citizens, not companies.

“The government was pricing oil derivatives locally, according to Platts on the Singapore stock exchange price, while companies were importing from nearby Gulf markets at a lower price, and the difference was going in favor of companies. Now the pricing of Gulf markets will be approved, and the difference, whether more or less, will be in the citizen’s favor.”

“This step is late but is a correct step, and we drew attention to it years ago,” he added.

Platts provides energy and commodities information and is a source of benchmark price assessments in the physical commodity markets.

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