Reuters: Regulatory News: Oil trading faces new disclosure rules -FT

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Oil trading faces new disclosure rules -FT Apr 23rd 2012, 00:49 SINGAPORE, April 23 | Sun Apr 22, 2012 8:49pm EDT SINGAPORE, April 23 (Reuters) - Oil trading is coming under closer scrutiny as the industry-backed Extractive Industries Transparency Initiative (EITI) explores ways to increase disclosure in deals between private trading firms and national oil companies, the Financial Times reported on Monday. The EITI, which is a voluntary scheme aimed at improving transparency, has until recently focused primarily on payments by mining and oil companies to governments including royalties and taxes. Non-governmental groups like the EITI are pushing for the release of disaggregated cargo date that includes the name of the buyer, the date, volume price and grade in an effort to improve transparency, the Financial Times reported. Some national oil companies traditionally sell their oil through tenders and direct contracts with traders and refiners, which are not made public. The talks on new rules, which are at a very early stage, come as the body embarks on a review of its rules, the paper said The move for greater disclosure in oil trading could have the biggest impact on trading heavyweights like Vitol, Glencore , Trafigura and Gunvor. International oil companies like BP, Shell and Total are also expected to see an impact because of their large trading units. Alexandra Gillies, head of governance at Revenue Watch, one of the groups involved with the EITI, told the Financial Times that greater transparency "encourages strong selling practices, bolsters government accountability and limits abuse of authority." The EITI was not immediately available for comment. Link this Share this Digg this Email Reprints

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