DME Oman Crude Oil Deliveries Reach 2 Billion Barrels
Dubai Mercantile Exchange (DME), the premier international energy futures and commodities exchange in the Middle East, announced today the delivery of its 2nd billionth barrel of Oman crude oil since inception in June 2007, following the expiry of its August-delivery contract at the end of June 2018.
Ali A. Al Riyami, Director General of Marketing, Ministry of Oil and Gas, Oman, said: “The Dubai Mercantile Exchange has proved a great success in enabling Oman, its equity partners and customers to transact Oman crude oil at a fair and transparent price. The 2 billion barrels of delivered Oman crude is a clear demonstration that transacting and pricing oil through a fully regulated exchange is a very positive step for both buyers and sellers.”
The 2-billion milestone underscores the position of DME Oman contract as the commodities contract with the largest physical delivery in the world. Deliveries via the exchange have grown sharply in recent years, culminating in 2017 in a monthly average of more than 29 million barrels.
Ahmad Sharaf, Chairman, DME, said: “Today’s milestone is a great testament to the partnership between Oman, the CME Group and Dubai in creating the OQD contract. The DME Oman contract is now one of the leading price indicators for oil in the world and has proved to be a valuable asset for the Middle East and Asia when it comes to price discovery and valuing crude oil across the region.”
In terms of oil shipments, 2 billion barrels is enough to fill 1,000 Very Large Crude Carriers (VLCCs), commonly referred to as supertankers, which are the primary vessels for shipping crude oil around the globe. At current values, 2 billion barrels of Oman crude oil would be worth approximately $150 billion.
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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