Dubai Mercantile Exchange yesterday its latest auction on behalf of Iraq’s National Oil Company, SOMO. The 2-million-barrel cargo of Basrah Light was awarded at a premium of $0.42 per barrel over the March 2018 Basrah Light Official Selling Price (OSP). Twenty-five companies have participated in the auction with 16 bids received during the two-minute auction.
In January 2018, DME auctioned a total of 6 million barrels for three different crude oil grades; Oman Blend, Basrah Light, and Basrah Heavy. This generated premiums of nearly $2 million.
DME Auctions was launched in 2016 in a bid to provide a transparent spot commodity auction system for the first time in the Middle East.
DME is a joint venture between Dubai Holding, Oman Investment Fund and CME Group. Global financial institutions and energy trading firms including Goldman Sachs, JPMorgan, Morgan Stanley, Shell, Vitol and Concord Energy also hold equity stakes in the DME.
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