21.6 Million Crude Oil Barrels Auctioned on DME with $13.7 Million of Premium Generated
Dubai Mercantile Exchange, the premier international energy futures and commodities exchange in the Middle East, concluded its latest auction on Wednesday 20 September 2017, on behalf of Iraq’s National Oil Company, SOMO.
Today’s 2-million barrel cargo of Basrah Light was awarded at a premium of $0.13 per barrel over the November Basrah Light Official Selling Price (OSP). 20 companies participated in the auction with 14 bids received during the two-minute auction.
DME has now hosted 13 auctions on its platform since January 2016, with a total of 21.6 million barrels sold, generating premiums totaling $13.7 million. Four different crude grades have been sold via the the platform including Oman crude oil blend, Basrah Light, Basrah Heavy and Malaysian Kimanis.
Ahmad Sharaf, Chairman, DME said: “DME auctions allows sellers to access a large pool of potential buyers and what would take many hours of phone conversations can now be accomplished during a two-minute auction period.”
More than 60 companies from around the globe are registered to participate in DME auctions.
“The success of DME auctions underlines the need for price discovery mechanisms in the region and greater transparency. It has enabled national oil companies to assess their monthly official selling price and adjust it to find fair value for national resources,’ added Sharaf.
Additionally, DME is working on a reverse auction, where buyers can procure commodities to meet domestic demand.
Dubai Mercantile Exchange
The Dubai Mercantile Exchange Limited (DME) is the premier international energy futures and commodities exchange in the Middle East, providing a financially secure, well-regulated and transparent trading environment.
The DME is majority owned by core shareholders Tatweer (a subsidiary of Dubai Holding), Oman Investment Fund and CME Group. Global financial institutions and energy trading firms such as Goldman Sachs, J.P. Morgan, Morgan Stanley, Shell, Vitol and Concord Energy have taken equity stakes in the DME, providing the exchange with a resounding vote of confidence by major players in global energy markets.
The DME is a fully electronic exchange, and its contracts are listed on the CME Globex platform, the world’s leading electronic trading platform, providing access to the broadest array of futures and options products available on any exchange. The DME is regulated by the Dubai Financial Services Authority (DFSA) and all trades executed on the exchange are cleared through and guaranteed by NYMEX (a member of CME Group), which is regulated by the U.S. Commodity Futures Trading Commission (CFTC) and is a recognized body by the DFSA.
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