Dubai: The Dubai Government’s Department of Petroleum Affairs has notified its customers that the official selling price (OSP) of Dubai crude oil to be delivered in August will be equal to the average daily settlement price of the Oman Crude Oil Financial Contract in Dubai Mercantile Exchange (DME) contracts traded over the next month.
Abdulla Abdul Karim, Director-General of the Department of Petroleum Affairs, told WAM that the department sets the price of Dubai crude oil in the market to parallel Oman’s oil prices, which reinforces the transparency of their pricing process commitment and sets a fair value for crude oil in the Middle East.
The official monthly price of Dubai crude oil — with the transition to the pricing of futures contracts — is determined in advance, wherein a differential price is set three months in advance (M-3), while the official final monthly price is determined at the end of the second month (M-2).
DME Oman crude oil is considered a benchmark for pricing crude oil by the countries that produce it, and it gives them a differential price that reflects the quality of the product.
