Dubai: The Dubai Gold and Commodities Exchange (DGCX) the world's newest online commodities derivative exchange will begin trading fuel oil contracts at the end of this month.
DGCX also plans to trade gasoline derivatives next year.
"This is an obvious progression for DGCX being headquartered at the commercial hub of the world's most vibrant energy producing region," said Colin Griffith, DGCX Chairman.
On October 30 DGCX will launch the Fujairah 380 CST high sulphur fuel oil futures contract to be followed by six consecutive forward month contracts with January 2007 being the near month contract. The contract will be traded in lots of 100 metric tonnes of 4.5 per cent sulphur, 380 centistoke fuel oil.
"The proposed futures contract will facilitate price discovery nearer home for a commodity which plays such an important role in the region," added Griffith.
The announcement comes as DGCX launches a major marketing campaign aimed at winning over the energy sector.
The campaign will kick-start at the Oil Barons Ball in Dubai in November, the annual social gathering for the Middle East's energy sector, held under the patronage of Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and CEO of Emirates Group.