The Dubai Mercantile Exchange (DME), the premier international energy futures and commodities exchange in the Middle East ended 2013 on a record high with its flagship DME Oman Crude Oil Futures contract posting year-on-year average daily volume trading growth of 36 per cent with 6,355 lots per day.
The DME Oman contract consolidated its status as the Middle East's largest physically delivered crude oil futures contract with more than 1.6 billion barrels of crude oil traded during 2013. In November 2013, DME set a new record for ADV of 7,450 lots equivalent to almost 7.5 million barrels of crude oil per day. New records in total monthly volume were also set in July 2013 with 162.4 million barrels of crude oil traded through the exchange. More than 60 companies now trade regularly through the exchange, representing all of the key stakeholders in the Asian crude oil markets as well as growing numbers of financial participants from around the world.
According to Ahmad Sharaf, Chairman of the DME, "The record performance for 2013 demonstrates consistent progress for the DME and is a measure of the success we have had in providing a mature and fully transparent price discovery mechanism for industry participants. Our growth in volumes can also be attributed to the confidence of global players in the DME value proposition which has been boosted by the enhanced efficiency of the trading platform and closer relationships with key Asian customers driven by a physical presence in the region through our representative office in Singapore. Currently, the Asian market is driving the bulk of global oil consumption and the DME Oman contract is uniquely positioned as the only contract which truly reflects the economics of the Middle East and Asia." Mr. Sharaf added, "The growth in our customer base last year with new trading members is a major confirmation of DME Oman's position as the keybenchmark for crude oil trading for the Asian markets. This solid performance also demonstrates the underlying fundamental strength of the DME contract in building more liquidity and meeting demand for Middle Eastern sour crude oil." WAM/tfaham