The Dubai Mercantile Exchange (DME) announced that Oman’s Ministry of Oil and Gas has become the first customer of its recently launched “DME Auctions” platform.
The news is a significant show of support for the first spot commodity auction system in the Middle East.
The Omani Ministry of Oil and Gas will add DME Auctions to their available options to market additional spot exports of Oman Blend Crude Oil.
This development highlights the Sultanate of Oman’s commitment towards adopting transparency in marketing and pricing its crude oil exports. The Sultanate already uses a fully regulated exchange benchmark – the DME Oman crude oil contract – to establish its official selling price for oil.
Owain Johnson, Managing Director, DME said: “We are honored 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,” he added.
“DME Auctions” meets a critical need in the commodity markets by serving those customers who want to buy and sell energy products and other commodities in the Middle East and beyond through a transparent auction process. “DME Auctions” is powered by market-leading auction software provided by Elysian Systems Ltd.