Dubai Mercantile Exchange (DME) Significant Growth in Future Contracts

The Dubai Mercantile Exchange (DME), the largest international energy futures market in the Middle East, announced Monday a quarterly increase of 45% in the number of futures contracts, as well as an average daily growth in volumes 33% in the first half. In progress.

The volume of contracts traded at futures prices was 208,997 between April and June, compared with 143,703 contracts in the first quarter of this year. The average daily volume went from 5,024 contracts in January to 6,695 contracts in June of this year. Future prices represent the value of the Oman futures contract for the coming months and allow customers to protect themselves against the risk of Omani crude price fluctuations in the future.

The average daily volume of futures prices in the first to seventh month was 6.1 million barrels in June this year, compared with 3.5 million barrels in the same month in 2018.

This development has been crucial since domestic oil companies such as Saudi Aramco began approving Oman's futures contract with the DME as part of its crude pricing mechanism.

In addition to the increase in futures, crude deliveries of crude oil from Oman to Oman reached 150 million barrels in the first six months of this year, now the Dubai Mercantile Exchange as a platform for the negotiation of the largest futures contract in terms of volumes Actual delivery worldwide.

"The DME Oman futures contract is an extremely efficient and transparent price discovery mechanism in the region and we are determined to continue developing market trading tools with our current and future partners of national oil companies." said Raed Al Salami, managing director of DME. We will strive to provide a unique platform for traders to ensure the sustainable growth of the sector as a whole.

"This contract has become an essential standard for oil sales from the Middle East to Asia and has been included in the official selling price of Saudi Arabia and the Kingdom of Bahrain from around the world. October 2018. This transformation has allowed customers and users to protect themselves against price fluctuations through the use of the Oman Ore futures contract.

The number of customers traded on the DME platform has soared this year and has 120 companies, which benefit from the guarantees offered by the exchange for other major commodities such as WTI, Brent crude, Dubai crude and crude. Oman at the Chicago Mercantile Exchange Clearinghouse, where DME products are installed.

The EMR has made improvements to its pricing mechanism by adding a new security standard to its trading platform, Velocity Logic of CME Group.

This mechanism monitors high price volatility by disclosing it over a predetermined period of time, and then temporarily suspends trading, allowing traders to re-evaluate their trades.