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Dubai Mercantile Exchange (DME) announced on Tuesday that its DME Auction platform was utilised by the Omani Ministry of Energy and Minerals to auction a cargo of one million barrels of Oman crude.
The barrel cargo of June-loading Oman crude was awarded at a premium of $3.69 per barrel over the June official selling price (OSP).
“The DME Auction platform saw 17 participants with 31 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,” the energy-focused commodities exchange stated.
The DME Auctions aims to provide commodity market participants with the flexibility to buy and sell physical commodities via an electronic auction system. This offers customers the advantage of a transparent platform to trade commodities for immediate delivery.
As many as 43.6 million barrels have been auctioned via the DME Auctions platform, generating $21.69 million in premiums, it stated.
Meanwhile, the price of Oman crude (for June 2022 delivery) rose 49 cents a barrel to settle at $108.57 per barrel in trading on the DME on Tuesday. The average price of Oman crude oil (April 2022 delivery) has stabilised at $91.96 per barrel, which is $8.34 per barrel higher than the previous month’s average.
On global markets, however, oil prices declined in volatile trading as investors weighed demand concerns against tight global supplies, said Reuters. It follows reports that Libya had paused some exports, while factories in distant Shanghai prepared to reopen following a Covid-19 shutdown.
Brent crude was down $1.41, or 1.2 per cent, to $111.99 a barrel at 10:28 GMT, after rising more than $1 to $114.21 earlier in the session.
US West Texas Intermediate crude fell $1.64, or 1.5 per cent, to $106.29 a barrel, after rising to $108.92 earlier.
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