DME Oman Crude up Over 100% Since Historic Production Cuts Implemented

Press release

Published May 18th, 2020 - 07:05 GMT

DME Oman Crude up Over 100% Since Historic Production Cuts Implemented

Dubai Mercantile Exchange

Highlights

Oman crude oil Benchmark trading on Dubai Mercantile Exchange has doubled in price since the record cuts agreed by the OPEC+ group and other major producers were implemented in time for May loading schedules.

Front-month July DME Oman Marker Price on Friday was $34.95/b, up $18.13/b from the record low of $16.82/b on April 28 – an increase of 108%.

The Marker Price is used by Middle East producers, which include Saudi Arabia, Kuwait, Bahrain, Oman and Dubai in calculating the Official Selling Price (OSP).

Middle East prices have also risen faster than those in Europe, with DME Oman trading at nearly $3/b over the Brent North Sea benchmark on Friday.

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.