DME Oman crude oil de­liv­er­ies reach 2 bil­lion bar­rels

Oil and Gas - - OMAN NEWS -

Dubai Mer­can­tile Ex­change (DME), the premier in­ter­na­tional en­ergy fu­tures and com­modi­ties ex­change in the Mid­dle East, has an­nounced the de­liv­ery of its 2nd bil­lionth bar­rel of Oman crude oil since in­cep­tion in June 2007, fol­low­ing the ex­piry of its Au­gust-de­liv­ery con­tract at the end of June 2018.

Ali A. Al Riyami, Di­rec­tor Gen­eral of Mar­ket­ing, Min­istry of Oil and Gas, Oman, said: “The Dubai Mer­can­tile Ex­change has proved a great suc­cess in en­abling Oman, its eq­uity part­ners and cus­tomers to trans­act Oman crude oil at a fair and trans­par­ent price. The 2 bil­lion bar­rels of de­liv­ered Oman crude is a clear demon­stra­tion that trans­act­ing and pric­ing oil through a fully reg­u­lated ex­change is a very pos­i­tive step for both buy­ers and sell­ers.”

The 2-bil­lion mile­stone un­der­scores the po­si­tion of DME Oman con­tract as the com­modi­ties con­tract with the largest phys­i­cal de­liv­ery in the world. De­liv­er­ies via the ex­change have grown sharply in re­cent years, cul­mi­nat­ing in 2017 in a monthly aver­age of more than 29 mil­lion bar­rels.

Ah­mad Sharaf, Chair­man, DME, said, “To­day’s mile­stone is a great tes­ta­ment to the part­ner­ship be­tween Oman, the CME Group and Dubai in cre­at­ing the OQD con­tract. The DME Oman con­tract is now one of the lead­ing price in­di­ca­tors for oil in the world and has proved to be a valu­able as­set for the Mid­dle East and Asia when it comes to price dis­cov­ery and valu­ing crude oil across the re­gion.”

In terms of oil ship­ments, 2 bil­lion bar­rels is enough to fill

1,000 Very Large Crude Car­ri­ers (VLCCs), com­monly re­ferred to as su­per­tankers, which are the pri­mary ves­sels for ship­ping crude oil around the globe. At cur­rent val­ues, 2 bil­lion bar­rels of Oman crude oil would be worth ap­prox­i­mately $150 bil­lion.

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