Omanoil Futures Contract Breaks Record

The Dubai Mercantile Exchange (DME) announced that a record open interest of 19,867 was achieved in its flagship DME Oman Crude Oil Futures Contract (DME Oman) last month. The DME also set a record for physical delivery with 13.4 million barrels for delivery in April 2010, surpassing the previous high of 11.6 million barrels set September 2009.
Open interest in DME Oman has been increasing steadily, the latest figure exceeding the previous record set last July. The rise in open interest is a leading indicator of the market's continuing confidence in DME Oman as a transparent and effective mechanism for pricing Middle East sour crude oil.

DME Oman is the largest physically delivered crude oil futures contract in the world with an average of nine million barrels per month delivered through the exchange in 2009. Since its launch in June 2007, more than 235 million barrels of Oman crude have been delivered through the DME. The DME recently reported a 69% year-on-year increase in trading volumes for 2009 with average daily volumes approaching 3,000 lots in the fourth quarter and continuing with a similar trend in the first two months of 2010. Ahmad Sharaf, chairman of the DME, said: "Today's announcement represents further evidence that DME Oman provides the most reliable risk management and price discovery tool for participants in the rapidly growing East of Suez markets.- Gulf News