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DME posts 36% increase in 2013 trading volumes

The DME Oman contract consolidated its status as the Middle East’s largest physically delivered crude oil futures contract with more than 1.6 billion barrels of crude oil traded during 2013.

In November 2013, DME set a new record for ADV of 7,450 lots equivalent to almost 7.5 million barrels of crude oil per day. New records in total monthly volume were also set in July 2013 with 162.4 million barrels of crude oil traded through the exchange.

More than 60 companies now trade regularly through the exchange, representing all of the key stakeholders in the Asian crude oil markets as well as growing numbers of financial participants from around the world.

“The record performance for 2013 demonstrates consistent progress for the DME and is a measure of the success we have had in providing a mature and fully transparent price discovery mechanism for industry participants,” said Ahmad Sharaf, chairman of the DME.

Launched in 2007, DME is the premier international energy futures and commodities exchange in the Middle East. It aims to provide oil producers, traders and consumers engaged in the East of Suez markets with transparent pricing of crude oil. DME has rapidly grown into a globally relevant exchange. Its flagship Oman Crude Oil Futures Contract (DME Oman) contract is now firmly established as the most credible crude oil benchmark relevant to the rapidly growing East of Suez market. DME Oman is the world’s third crude oil benchmark and the sole benchmark for Oman and Dubai exported crude oil.

“Our growth in volumes can also be attributed to the confidence of global players in the DME value proposition which has been boosted by the enhanced efficiency of the trading platform and closer relationships with key Asian customers driven by a physical presence in the region through our representative office in Singapore,” addedSharaf .

Currently, he said the Asian market is driving the bulk of global oil consumption and the DME Oman contract is uniquely positioned as the only contract which truly reflects the economics of the Middle East and Asia. “The growth in our customer base last year with new trading members is a major confirmation of DME Oman’s position as the key benchmark for crude oil trading for the Asian markets. This solid performance also demonstrates the underlying fundamental strength of the DME contract in building more liquidity and meeting demand for Middle Eastern sour crude oil,” Sharaf added.