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|22 April, 2019

DME starts consultation on adding Murban to Oman crude contract

Murban could add about 700,000 barrels per day to the volume of oil available for delivery on DME

Image used for illustrative purpose. Crude oil extraction pump pulling crude oil up to the surface and pushing it into pipelines in the Permian Basin in West Texas.

Image used for illustrative purpose. Crude oil extraction pump pulling crude oil up to the surface and pushing it into pipelines in the Permian Basin in West Texas.

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SINGAPORE - * The Dubai Mercantile Exchange (DME) said on Monday it had started a public consultation on adding Abu Dhabi's Murban crude as an alternative grade for delivery into its Oman crude futures contract

* The consultation comes after DME received preliminary regulatory approval, it said in a statement on its website

* The deadline to submit comments is May 21, DME said

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* Murban could add about 700,000 barrels per day to the volume of oil available for delivery on DME

* This will "reinforce the benchmark transparency and fair market value representation," DME said

* The exchange may set price differentials to account for the difference in quality between Oman and Murban grades, trade sources said earlier 

(Reporting by Florence Tan; Editing by Tom Hogue and David Evans) ((Florence.Tan@thomsonreuters.com; +65 6870 3497; Reuters Messaging: florence.tan.thomsonreuters.com@reuters.net))

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