Prices of oil are on a downward spiral, despite conflicts in Iraq and Syria owing to advancement of extremist group Islamic State.
In the UAE, Oman crude oil prices trading on the Dubai Mercantile Exchange registered another significant milestone on October 10, 2014, as prices tumbled through the $90/barrel level for the first time in more than two years.
The front-month December DME Oman futures traded at a low of $87.85 per barrel before settling at $88.32 per barrel at 12:30 Dubai time, with more than 2,323,000 barrels traded during the window.
Front-month DME futures were last below $90/b for two days during June 2012, but prior to that the last time Oman spent any extended period below $90/b was in the latter part of 2010.
The DME Marker Price is used by the governments of Oman and Dubai to calculate the Official Selling Price for crude oil exports.
DME’s chief executive, Christopher Fix, says: “As the market environment becomes increasingly challenging, risk management and transparent benchmarking are becoming ever more critical.”
Dubai Mercantile Exchange is the 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.
Launched in 2007, 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.
Reflecting the economics of the Asian region like no other contract, and the largest physically delivered crude oil futures contract in the world, DME Oman is the world’s third crude oil benchmark and the sole benchmark for Oman and Dubai exported crude oil.