The Dubai Mercantile Exchange, home of the Oman crude oil futures contract, is on track to record in February its best month by volume, as the credit crisis prompts oil traders to move their deals from the opaque, private bilateral market into the exchange.
The DME is benefiting from the freezing of the over-the-counter market in Singapore, the world’s third-largest oil hub, as traders worry about counterparty risk – the possibility that the other side of their deals defaults.
Dubai oil, a competitor of Oman oil with similar characteristics to it, trades in the Singapore’s OTC market.
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