DUBAI / WAM
Dubai Mercantile Exchange (DME), the international energy futures exchange in the Middle East, on Tuesday announced a 21 percent increase year-on-year in exchange trading activities, along with 172 percent increase in forward curve trading, following Saudi Aramco’s adoption of DME Oman in its official selling price in October 2018.
In 2019, DME registered an average daily volume of 5.97 million barrels of crude oil from January to October, up from 4.95 million barrels for the same period in 2018, said a DME press release on Tuesday. Forward curve activities reached a total of 600.7 million barrels from January-October 2019, compared with 223.2 million barrels in the corresponding period in the previous year.
“We are witnessing a growing interest among crude oil sellers and buyers to trade and participate in the price discovery through DME, the only regulated energy exchange in the biggest oil-producing regions,” Raid Al-Salami, Managing Director of DME, said. He added that DME today plays a major role as the most reliable pricing point for Middle Eastern crude oil going East, due to its growing and diversified customer base, the transparency of DME Oman benchmark and its ability to capture the real supply-demand situation in the East of Suez market. “The tremendous growth we experienced over the first 10 months of the year is a true testimony to our unmatched credentials.”
DME delivers between 15 and 22 million barrels of Oman crude every month. A wide range of customers lift physical Oman crude via the Exchange delivery mechanism, shipping the oil to refineries across Asia.