Dubai Mercantile Exchange gains the confidence of major oil producers

The platform has established its image as the most reliable source of oil pricing in the region, Sheikh Maktoum said

The Bukha A Oman oil field in Oman. The Dubai Mercantile Exchange lists the Oman Crude Oil Futures Contract as its flagship contract. Pawan Singh / The National

Dubai has supported financial markets through legislative frameworks and right infrastructure, and allowed exchanges – such as the Dubai Mercantile Exchange – to consolidate their presence regionally and globally, Sheikh Maktoum bin Mohammed, Deputy Prime Minister, Minister of Finance and Deputy Ruler of Dubai, said.

DME, which trades Oman's crude oil futures contracts, has gained the confidence of major oil producers and established its image as the most reliable source of oil pricing in the region, Sheikh Maktoum said in a statement on Tuesday.

Sheikh Maktoum held a meeting with the DME’s board of directors to review the latest developments and future growth opportunities.

He praised the DME's achievements, noting that the successful exchange strategy contributed to the growth of trading volume and enhanced its ability to benefit from the steady growth of crude oil trading in the Middle East and Asia regions.

Launched in June 2007, the DME is an energy-focused commodities exchange in the East of Suez. Based within the Dubai International Financial Centre, it lists the Oman Crude Oil Futures Contract as its flagship contract, providing the most fair and transparent crude oil benchmark for the region.

The number of companies using the platform for physical delivery rests at 60 and the number of barrels of oil delivered through the DME mechanism is 2.5 billion barrels.

The contract is regarded as the most reliable crude oil futures price benchmark due to the quality of Oman Blend, which represents the majority of the GCC crude oil grades.

DME is a joint venture between Dubai Holding, Oman Investment Authority and CME Group — an American global markets company. In addition to its core shareholders, global financial institutions and energy trading firms such as Goldman Sachs, JP Morgan, Morgan Stanley, Shell and Vitol have taken equity stakes in DME.

Updated: January 25, 2022, 5:21 PM