Thursday 25 / April / 2024
Muscat: Dubai Mercantile Exchange (DME) welcomed the latest Middle East oil producer to switch its crude oil pricing formula to include the DME Oman benchmark.
“We are honoured Bahrain has decided to incorporate DME Oman into its pricing formula. This marks the latest step in the evolution of the DME Oman crude oil benchmark for regional producers and customers across Asia. It also represents an important recognition of the contract as the most efficient and transparent price discovery mechanism for regional crude oil heading East of Suez,” said Raid Al-Salami, Head of DME.
The Bahrain Petroleum Company (Bapco) informed customers of the pricing formula switch for Arab Medium crude sales to Asia, which comes into effect with October 2018 loading cargoes.
Bahrain is the fourth National Oil Company (NOC) to implement DME Oman in its pricing formula. The DME Oman crude oil benchmark is currently used to establish the price of crude oil produced in the Kingdom of Saudi Arabia, the Sultanate of Oman, and the Emirate of Dubai.
DME is the premier international energy futures and commodities exchange in the Middle East, providing 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) 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, 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 Centre (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.
