§ Mr. Skeetasked the Secretary of State for Energy if he will indicate the location of spot markets trading crude oil and petroleum products in and outside Europe and the volume of trading done by each.
§ Mr. GrayThe world's main spot markets for oil products have evolved around the major refining centres in North-West254W Europe—conventionally called the Rotterdam market—the Mediterranean, the Arabian Gulf, Singapore, the Caribbean and the east and Gulf coasts of the United States of America. In contrast, spot sales of crude oil are in most cases made with direct delivery from oil producing countries. There are no reliable assessments available of the volumes of crude oil and products sold internationally on a spot basis but they are known to represent only a few per cent. of total volumes traded.
§ Mr. Skeetasked the Secretary of State for Energy what is the Government's attitude to an oil exchange for spot market transactions as suggested by the EEC; and how the proposals could be rendered internationally acceptable.
§ Mr. GrayI am hopeful that the detailed examination of spot transactions in Europe which the EEC restarted at the beginning of June will indicate more clearly to Governments and industry what further improvements in transparency or the structure of the spot market are desirable and practicable. If a prima facie need for it were made out I would certainly be willing to study proposals for an oil exchange. I recognise that the European spot market is international in character and there would need to be wideranging discussions before changes of this sort were made.