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Dubai - Oman crude oil prices on the Dubai Mercantile Exchange settled above $60/b for the first time in four months, as prices continued to climb on signs of a slowdown in US shale oil production.
Front-month June DME Oman futures contract settled 12:30 Dubai time at $60.22/b, up $1.94 on the previous close and the highest price since December 12, 2014. Oman prices have now gained $16.87/b from the six year low of $43.35/b in mid January, or 39%.
The renewed strength this week came as the US Energy Information Administration forecast that shale production is set to fall by 57,000 barrels a day in May, suggesting US domestic output is close to peaking. Additionally, the latest inventory data from the US showed a smaller weekly build in oil stocks than the market had expected.
Christopher Fix, Chief Executive of DME, said: "The oil markets are certainly seeing some more bullish momentum at the moment, but whichever way the price goes from here, I'd expect continued volatility to be a major part of the story. In the first eight months of 2014, DME witnessed price moves of over 2% in just 2 occasions, and since October 2014 till date DME has seen around 50 daily price moves of the same magnitude."
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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
Media Contacts:
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© Press Release 2015
