Dubai: Dubai Mercantile Exchange (DME), the premier international energy futures exchange in the Middle East, issued today a public consultation to add Abu Dhabi Murban crude oil as an alternative delivery crude into its flagship DME Oman Crude Oil Futures Contract, after receiving preliminary regulatory approval.

With a production capacity of approximately 1.7 million bpd, out of which 40% are freely traded, Murban will be deliverable through the exchange on certain market situations at the seller’s option. This potentially adds around 700,000 barrels per day to the standard Oman crude oil delivery mechanism and reinforces the benchmark transparency and fair market value representation.

Ahmad Sharaf, Chairman of DME, said: ’We are committed to enhance Oman crude benchmark so it is always aligned with current market trends. The oil industry went through several changes in the past decade, therefore, the benchmark had to evolve to reflect latest market dynamics and both consumers and producer’s needs.”

DME’s Oman Crude Oil Futures Contract is currently used by the governments of Oman, Dubai, Saudi Arabia and Bahrain to set their official selling price of crude oil export heading to Asia. The contract is widely traded by a wide diversity of customers around the globe and more than 80 players participate in the price discovery mechanism on the Exchange on any given trading day.

Sharaf ended:” The potential addition of a new grade, combined with CME Group’s recently implemented Velocity Logic, will bring an additional level of security to the DME Oman benchmark and strengthen its status as the most reliable price discovery mechanism for Middle Eastern crude oil.”

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About Dubai Mercantile Exchange (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 2019

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