DME August Oman Crude Trades Above $40/B, First Time in Three Months

Press release

Published June 2nd, 2020 - 09:50 GMT

The DME Marker Price for Monday was set earlier in the day at $39.62/b.

Highlights

Benchmark Oman crude oil trading on the Dubai Mercantile Exchange traded above $40 per barrel Monday for the first time in almost three months

Benchmark Oman crude oil trading on the Dubai Mercantile Exchange traded above $40 per barrel Monday for the first time in almost three months, making it the first internationally traded crude oil futures contract to break the $40/b mark since the oil price recovery started early May.

Front-month August DME Oman traded at a high of $40.09/b, up $0.30/b from Friday’s settlement price of $39.79/b. Oman last traded above $40/b on March 6 of this year.

The DME Marker Price for Monday was set earlier in the day at $39.62/b. The Marker Price is used by Middle East producers Saudi Arabia, Kuwait, Bahrain, Oman and Dubai in calculating the monthly Official Selling Price (OSP).

Middle East prices have recovered faster than those in Europe, with DME Oman trading at around $2/b over the Brent North Sea benchmark on Monday.

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.