Muscat – The physical deliveries of Oman crude oil on the Dubai Mercantile Exchange (DME) recorded a sharp increase during the first quarter of 2023.
DME, the premier international energy futures exchange in the Middle East, delivered 63.77mn barrels of Oman crude via its exchange delivery mechanism in the first quarter of 2023. This was an increase of 18 per cent from the 54.01mn barrels delivered in the same quarter of 2022, according to a statement issued by DME.
DME also recorded a nine per cent increase in total trading volume during the first quarter of this year as compared to the same period a year ago.
Raid al Salami, managing director of DME, said, “We always look at the physical performance of the exchange as a true indicator of market dynamics in the East of Suez market. We have seen a strong boost in crude oil demand since the beginning of the year.”
DME Oman Crude Oil futures are a physically settled contract that is a core Middle East crude pricing benchmark. The contract’s daily pricing is utilised by Middle East national oil companies (NOCs) to price oil exports from the Middle East to Asia and acts as a fundamental indicator for crude oil supply-demand in Asia.
The Middle East NOCs from Oman, Saudi Arabia, Kuwait, Bahrain and Dubai all use DME Oman pricing as part of 5.5mn barrels of crude that is exported to Asia each day.