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|25 August, 2016

Dubai announces crude oil price for November

Dubai notified customers that the official price of Dubai crude oil to be delivered in Nov will be US$0.15 less than price of the Oman Crude Oil.

Cars queue for petrol at a gas station in Dubai June 11, 2012. Image for illustrative purposes.

Cars queue for petrol at a gas station in Dubai June 11, 2012. Image for illustrative purposes.

REUTERS/Ghazal Watfa

DUBAI, 25th August, 2016 (WAM) -- The Department of Oil Affairs of the Government of Dubai has announced that it has notified customers that the official price of Dubai crude oil to be delivered in November will be US$0.15 less than the average daily settlement price of the Oman Crude Oil Financial Contract in Dubai Mercantile Exchange for contracts being traded during the next month.

The official monthly price of Dubai crude oil, with the transition to the pricing futures contracts, is determined in advance, as a differential price is placed before three months, "M-3", while the official final monthly price is determined at the end of the second month, "M-2 ".

DME Oman crude oil is considered a benchmark for pricing crude oil by the countries that produce it, and it gives them a differential price that reflects the quality of the product.

Everyday at 12:30 p.m. Dubai time, Dubai Mercantile Exchange determines the daily settlement price of the Oman contract, which is the average price of transactions made within five minutes from 12:25 p.m to 12:30 p.m, Dubai time.

On the last circulating day of the month, the settlement’s window lasts for thirty minutes from 12:00 p.m. until 12:30 p.m., Dubai time.

© Copyright Emirates News Agency (WAM) 2016.
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