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Oman crude volumes traded on DME surpass 3-billion-barrel mark

Raid bin Khalifa al Salami — Managing Director, DME
Raid bin Khalifa al Salami — Managing Director, DME

The Dubai Mercantile Exchange (DME), the trading platform for DME Oman — the Oman crude oil benchmark — has supplied more than 3 billion barrels of Omani crude through its physical and EFP mechanism, since its inception in 2007. It recorded a 23 per cent increase year-on-year in physical volumes in 2022 with more than 181 million barrels being delivered and shipped through the exchange, compared to 147 million barrels in 2021.

DME witnessed a remarkable growth in trading volumes, which reflects traders’ interest in what the Oman futures contract represents and its importance in the global oil markets. The global trading community adapted its price mechanism as an ideal tool for hedging and managing financial risks, especially in 2022 where sharp fluctuations and high volatility in energy markets were seen.

DME registered a 20 per cent increase in front month volume, with an 11 per cent increase across the total trading volume as a result of the price transparency and liquidity that led most major Middle East National Oil Companies (NOCs) to utilise the DME Oman sour crude futures benchmark as part of their export pricing formulas.

Raid bin Khalifa al Salami, Managing Director, DME said: “Our performance in 2022 reflects the importance of DME Oman as the preferred benchmark and price discovery mechanism for sour crude in the East of Suez market. These increased trading volumes highlight the contract as the most reliable and transparent benchmark for sour crude heading to Asian markets.” “The increase in physical delivery demonstrates the high confidence in our delivery mechanism. DME remains focused on delivering world class services to our producers, traders and refiners, to maintain the exchange’s position as the home of the most reliable sour crude benchmark in the world,” he added.

Meanwhile, Oman oil price yesterday reached $83.55 per barrel, recording an increase of $3.15 per barrel compared to Tuesday's price of $79.91 per barrel.

The average price of Oman oil (February 2023 delivery) has stabilised at $77.43 per barrel, registering a decline of $8.72 per barrel than January 2023 delivery.

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