DME hits new high as Oman Oil physical delivery touches 2.5bn barrels

Business Monday 21/June/2021 16:13 PM
DME hits new high as Oman Oil physical delivery touches 2.5bn barrels
Photo: File

Dubai: Dubai Mercantile Exchange (DME) on Monday announced a new quality achievement since its establishment in terms of physical delivery of Oman Oil, which stood at 2.5 billion barrels.

The DME has been able to consolidate the position of Oman Crude futures contract with the most reliable specifications for Asian oil markets.

Raid Khalifa Al-Salami, DME Managing Director, said that Oman Crude futures contract gains significance day by day due to its fair, transparent settlement mechanism that allows for the exploration of eastward crude oil prices.

DME earned the confidence of major oil producers in the region, prompting them to endorse Oman Crude as oil price index benchmark, thereby allowing their clients to conduct full hedging operations, he added.

Al-Salami told Oman News Agency (ONA) that Oman Oil is one of the main pillars of Dubai energy exchange and that it assumes a ‘signal’ role in the region prior to launch on the stock market.

He looked forward to cementing ties with producing countries and developing platforms of exchange, providing the best possible hedging solutions to clients and serving GCC states and the region at large.

Saudi Arabia, Kuwait and Bahrain have joined the list of countries that endorse Oman Crude as a reference point price for their crude products.

Thus, Oman Crude futures contract has become the benchmark for about 170 million barrels of oil, monthly, since 2018, after it had been restricted as price criterion for 30 million barrels a month.