Dubai Mercantile Exchange crosses one billion barrels mark

Since its launch, DME Oman has emerged as a leading price discovery mechanism for East of Suez crude markets.

Dubai: The Dubai Mercantile Exchange Limited (DME) announced Sunday that cumulative trading in its benchmark DME Oman Crude Oil Futures Contract (DME Oman) has exceeded one million contracts, representing one billion barrels of crude oil traded, since its launch on June 1, 2007.

"At the close of trading on 27 November 2009, DME Oman had traded a total of 1,000,174 contracts, which at 1,000 barrels per contract is equivalent to more than 1 billion barrels of crude oil".

Since its launch, DME Oman has emerged as a leading price discovery mechanism for East of Suez crude markets. Reflecting the growing liquidity of its flagship contract, the DME reported a 60 per cent year on year increase in average daily volumes during 2009, averaging at 2,037 contracts.

"This is a crucial milestone for DME and all our stake holders. This proves that we have got all our fundamentals right in creating a globally accepted benchmark in sour crude. The rising volumes are testimony to the market acceptability of DME Oman Crude Oil Futures Contract and the DME as a viable marketplace," Ahmad Sharaf, Chairman of the DME told Gulf News.