Dubai Mercantile Exchange (DME), the premier international energy futures and commodities exchange in the Middle East, has announced the delivery of its second billionth bbl 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 two billion bbl 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 two-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 bbl.
Ahmad Sharaf, chairman of DME, commented, “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, two billion bbl 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, two billion bbl of Oman crude oil would be worth approximately US$150bn.
