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Dubai - The Dubai Mercantile Exchange (DME) announced today that Oman's Ministry of Oil and Gas has become the first customer of its recently launched "DME Auctions" platform. The news is a significant show of support for the first spot commodity auction system in the Middle East.
The Omani Ministry of Oil and Gas will add DME Auctions to their available options to market additional spot exports of Oman Blend Crude Oil.
This development highlights the Sultanate of Oman's commitment towards adopting transparency in marketing and pricing its crude oil exports. The Sultanate already uses a fully regulated exchange benchmark - the DME Oman crude oil contract - to establish its official selling price for oil.
Owain Johnson, Managing Director, DME said: "We are honored by the decision of the Omani Ministry of Oil and Gas to add "DME Auctions" to their current tools to sell spot crude oil. This decision is a great endorsement of our new platform and of DME's work to enhance transparency in the east of Suez oil markets. At a difficult time for the oil markets, the need for reliable and regulated benchmarks has never been greater. We salute the Oman government's commitment to transparency and we look forward to working closely with the ministry to launch the crude oil auctions whenever the volumes are available."
"DME Auctions" meets a critical need in the commodity markets by serving those customers who want to buy and sell energy products and other commodities in the Middle East and beyond through a transparent auction process. "DME Auctions" is powered by market-leading auction software provided by Elysian Systems Ltd.
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About DME
DME is the premier international energy futures and commodities exchange in the Middle East. It aims to provide oil producers, traders and consumers engaged in the East of Suez markets with transparent pricing of crude oil.
Launched in 2007, DME has rapidly grown into a globally relevant exchange. Its flagship Oman Crude Oil Futures Contract (DME Oman) contract is now firmly established as the most credible crude oil benchmark relevant to the rapidly growing East of Suez market. Reflecting the economics of the Asian region like no other contract, and the largest physically delivered crude oil futures contract in the world, DME Oman is the world's third crude oil benchmark and the sole benchmark for Oman and Dubai exported crude oil.
DME is a fully electronic exchange, with regulatory permissions allowing access from more than 20 jurisdictions, including the major financial centers of Asia, Europe and the United States. The Exchange is located within the Dubai International Financial Center (DIFC), a financial free zone designed to promote financial services within the UAE. The DME is regulated by the Dubai Financial Services Authority and all trades executed on the DME are cleared through and guaranteed by CME Clearing.
DME is a joint venture between Dubai Holding, Oman Investment Fund and CME Group. Global financial institutions and energy trading firms including Goldman Sachs, JPMorgan, Morgan Stanley, Shell, Vitol and Concord Energy also hold equity stakes in the DME. www.dubaimerc.com
For more information, please contact:
DME
Mayssam Hamadeh
Head of Marketing
+971 506523754 (mobile)
mayssam.hamadeh@dubaimerc.com
TRACCS (PR agency)
Walid Majzoub
+9714 3672530
walid.majzoub@traccs.net
TRACCS 24/7 Media Hotline: +97150 9448389
© Press Release 2015
