Allows dealers to trade a variety of oils at "Oman Crude" prices.
DME Launches the 'Alternative Oil' Platform
The DME is headquartered in the Dubai International Financial Center.
From the source
The Dubai Energy Exchange announced yesterday the launch of the "Alternative Oil" platform, which provides dealers with the opportunity to trade a group of the most prominent Middle Eastern oils, according to the official price of "Oman crude", which is considered the most appropriate price index for the region's oil.
The Stock Exchange, which is based in the Dubai International Financial Center, affirmed that the platform is available to all participants, and that traders can trade: “Dubai Crude”, “Upper Zakum”, “Murban”, “Basra Light”, “Basra Heavy”, “Al Shaheen”. And «Omani crude», in exchange for Omani crude futures, and the new platform will allow dealers of Middle East crude to trade direct sales contracts at a price difference from Oman’s future crude on the DME.
"Dubai Energy" stated that the new service provided by the exchange reflects the growing interest and the pioneering position of the Omani crude future contract, the most reliable standard that provides a fair market value, not only for "Oman crude", but for all oils produced in the Middle East region. And exported to the eastern markets of Suez.
The Director General of the Dubai Energy Exchange, Raed Al-Salami, said: “We always strive to enrich the experience of dealers and enable them to take advantage of the opportunities provided by the markets,” pointing out that the “Alternative Oil” platform is unique, as it combines futures contracts and direct sales contracts (OTC). ) In one platform for the first time, providing all participants with an opportunity to improve their trading activities and stimulate financial risk management.
An innovative opportunity
An innovative opportunity
In turn, the CEO of the Dubai International Financial Center Authority, Aref Amiri, said that the "alternative oil" platform provides an innovative opportunity to trade a group of various oils at a price difference from Oman's future crude on the DME.
He added: “We are pleased with the achievements made by the exchange that strengthened its position to become the first international exchange in the Middle East region for energy futures contracts, starting from the Dubai International Financial Center,” pointing out to providing opportunities for dealers to provide innovative products and contribute to shaping the future of the financial sector in the region.
For his part, the Undersecretary of the Ministry of Energy and Minerals in the Sultanate of Oman, Salem Al-Awfi, said that the ministry supports all continuous improvement initiatives in the oil markets, as it promotes the discovery of fair prices for crude oil in the region.
He added, “The Oman crude futures contract at the DME is the most reliable benchmark since 2007. We believe in the stock’s capabilities after it was able to overcome the challenges faced by global markets in 2020 and strengthen its position as a natural standard for crude oil.”
He emphasized that with the launch of the "Alternative Oil" platform, dealers would be able to discover the fair price for a group of Middle Eastern oils, based on the criterion of the Oman Oil Futures Contract.
It is noteworthy that this new initiative is in line with the objectives of the Dubai International Financial Center, and its contributions to achieving the ambitions of the Dubai Plan 2021 by strengthening the emirate's position as a central financial center in the global economy.
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