The Dubai Mercantile Exchange Limited (DME) today announced that it has achieved its highest level of open interest for its benchmark Oman Crude Oil Futures Contract, since the commencement of trading on the Exchange on 1 June 2007.
As of October 24, open interest on the DME stood at 7,199 contracts, an increase of 732 since the previous high of 6,467 recorded on 29 June 2007. A rise in open interest on the Exchange is a leading indicator that customers are becoming more confident with the Oman Crude Oil Futures contract as the pricing mechanism for Middle East sour crude oil.
This rise in open interest also corresponds with a steady increase in trading volumes. During the month of September and month-to-date in October, average daily trading volumes were 1,865 and 1,953, respectively as the DME continues to attract new market participants and further expand its global customer base. In recent weeks, the DME has also seen active trading of the Oman Crude Oil Futures Contract as far out as December 2008.
Commenting on the announcement, Gary King, Chief Executive Officer of the DME, said: "We are pleased to continue to report enhanced levels of open interest and trading activity on the Exchange. This development is further underscored by the consistent growth in trading activity as additional members are being inducted and new participants enter the market. We are particularly gratified to see strong volume growth out of Asia, where confidence in our benchmark Oman Crude Oil Futures Contract has increased significantly following the successful physical delivery of the DME futures contracts traded during our first two months of operation. We are extremely positive about this enhanced level of activity and confident that we will continue to build on this progress and attract even greater industry participation in the weeks and months ahead."
Enhanced levels of liquidity and open interest on the Exchange provide greater visibility and transparency for the trading and pricing of Middle East sour crude oil and further reinforce fast growing recognition of the Oman Crude Oil Futures Contact as the global benchmark for the pricing of Middle East sour crude oil.