Dubai Mercantile Exchange trades 1b barrels since 2007

Dubai: The Dubai Mercantile Exchange Limited (DME) announced on Sunday that cumulative trading in its benchmark DME Oman Crude Oil Futures Contract (DME Oman) had 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 November 27, 2009, DME Oman had traded a total of 1,000,174 contracts, which at 1,000 barrels per contract is equivalent to more than one billion barrels of crude oil."

Since its launch, the 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 stakeholders. 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.

DME Oman is the largest physically delivered crude oil contract in the world. Physical deliveries of DME Oman recently averaged 10 million barrels per month, achieving a record volume of 11.6 million barrels for September 2009 delivery.

This development marks a 60 per cent increase in physically delivered volumes from August 2007 to date.

"This [the volume] reflects the growing acceptance of the DME Oman Crude Oil Futures Contract among key energy traders and hedgers, particularly in the key AsiaPac region. We look forward to continued successful co-operation between our organisations," said Craig Donohue, chief executive of the CME Group.