DME Auctions: October Oman Cargo Sold at OSP +$0.20

Press release
Published July 31st, 2019 - 11:18 GMT
Dubai Mercantile Exchange
Dubai Mercantile Exchange
Highlights
Oman’s Ministry of Oil and Gas (MOG) sold a cargo of Oman blend crude via DME Auctions on Wednesday

Oman’s Ministry of Oil and Gas (MOG) sold a cargo of Oman blend crude via DME Auctions on Wednesday, achieving a strong premium above the Official Selling Price (OSP) which reflects the current strength of the Middle East crude oil market, particularly in Oman.

The 2-million-barrel cargo of October-loading Oman Blend crude was awarded at a premium of $0.20 per barrel over the October OSP. The DME Auction platform saw 22 participants take part in the auction with 21 active bids placed during the 2-minute period. The Oman OSP is calculated on a volume-weighted average of daily DME Oman Crude Oil (OQD) Marker Prices over the month.

Raid Al-Salami, Managing Director, DME, said: “Premium bids placed during the auction underline the high demand for Oman crude oil and other similar grades. This demand is further presented by the higher participation in the auction from many major global crude oil traders being able to participate in a transparent and real-time pricing mechanism."

“The DME platform has auctioned 37.6 Million Barrels from 4 different grades including Oman Crude Oil, Basrah Light, Basrah Heavy and Kimanis. There are more than 60 buyers that are now registered on the DME Auctions platform showing the demand for such barrels,” he added.

Background Information

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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