The Oil and Gas Ministry of Oman has become the first client of the Dubai Mercantile Exchange’s DME Auctions platform, which was launched in September to enhance spot trading in commodities.
The DME Auctions is the first spot commodity auction system in the Middle East, the Dubai Mercantile Exchange said in a statement, aiming to provide a transparent trading venue for investors on the spot energy commodities market in the region.
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Need for Transparency
For Oman, the DME Auctions channel will be another option for traders in Oman Blend Crude Oil, besides the DME Oman crude oil contract, which the sultanate is already using as a benchmark for the asking price of its crude.
“At a difficult time for the oil markets, the need for reliable and regulated benchmarks has never been greater.”
DME’s Managing Director Owain Johnson, said: “We are honoured by the decision of the Omani Ministry of Oil and Gas to add “DME Auctions” to their current tools to sell spot crude oil. This decision is a great endorsement of our new platform and of DME’s work to enhance transparency in the east of Suez oil markets. At a difficult time for the oil markets, the need for reliable and regulated benchmarks has never been greater. We salute the Oman government’s commitment to transparency and we look forward to working closely with the ministry to launch the crude oil auctions whenever the volumes are available.”