Monday 8 August 2011

FT Alphaville » What happens when you lose a global oil benchmark…

Another one, somewhere in the world, flourishes…

From the Dubai Mercantile Exchange — the keeper of the world’s only possible alternative to the ailing WTI and Brent crude contracts (for now) — on Monday:

DUBAI, UAE, 8 August 2011: The Dubai Mercantile Exchange Limited (DME) announced today that it set two new trading records during the month of July 2011. The exchange not only achieved the highest average daily volumes, but also saw record physical delivery for its benchmark Oman Crude Oil Futures Contract (DME Oman)since the commencement of trading on the Exchange in June 2007.

Average daily volumes (ADV) for DME Oman Crude Oil Futures Contract (DME Oman) in July stood at 4,427 contracts (equivalent to 4.4 million barrels of oil per day), with a record total of 88,539 contracts traded for the month. This represents a 35% year-on-year increase in trading levels on the exchange. The month also saw DME Oman achieve a new record for physical delivery, with 15.4 million barrels of oil to be delivered in September 2011 through the Exchange, surpassing the previous high of 15.1 million barrels set for delivery in September 2010.

This confirms the status of DME Oman as the largest physically delivered crude oil contract in the world, underscoring to market participants the benefit of robust price discovery through direct linkage to true market supply and demand fundamentals.


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