DME Oman sees daily trading up 130pc
Dubai , June 1, 2010
The Dubai Mercantile Exchange (DME) said the average daily trading of its flagship unit, Oman crude oil futures contract (DME Oman), has increased by 130 per cent since 2008 and added that it was planning new contracts this year.
The trade volume averages 2,955 lots since the start of 2010 which is equivalent to around three million barrels of oil traded daily, said Ahmad Sharaf, the DME chairman while speaking at a function to mark the third anniversary celebrations of DME.
'The DME Oman continues to demonstrate a strong link to the underlying Oman crude physical market and is the largest physically delivered crude oil futures contract in the world,' he stated.
The total number of DME Oman contracts traded since the exchange launched in 2007 has exceeded 1,374,000 - equivalent to more than 1.3 billion barrels of oil, he added.
Sharaf said the DME has over the course of the past year, enjoyed sustained liquidity growth driven by the robust link to supply and demand fundamentals.
'We have experienced record levels of physical delivery and ever growing acceptance from producers and consumers of fair value and transparency that DME Oman brings to the market,' he noted.
'We take this opportunity to thank our shareholders and stakeholders for their support and look forward to continued growth in 2010,' he added.
DME chief executive Thomas Leaver said the exchange was planning to launch the Oman swaps and options contracts in the near future.
'The contracts will enhance market participants’ ability to manage price exposure by providing additional flexibility and continued protection through transparent settlements and centralized clearing,' he noted.
'On our third year anniversary, we look forward to working with our customers, members, shareholders and industry stakeholders over the coming year to cement the DME Oman contract as the most fair and transparent pricing benchmark for East of Suez crude oil markets,' Leaver added.
The DME was launched in June 2007 with the goal of bringing fair value, transparent price discovery and efficient risk management to East of Suez, the fastest growing commodities market and the largest crude oil supply/demand corridor in the world.
Today, DME Oman is the explicit and sole benchmark for Oman and Dubai crude oil Official Selling Prices, the historically established markers for Middle East crude oil exports to Asia.-TradeArabia News Service