Steady Growth Continues As Volume, Open Interest and Physical Delivery Hit New Highs
The Dubai Mercantile Exchange Limited (DME) today reported further trading records in November as the Exchange marked its first six months with continued steady growth.
The DME's benchmark Oman Crude Oil Futures Contract traded a total of 42,658 contracts during November, beating the previous record of 39,885 set the month before. Average daily volume was 2,027, up from 1,734 in October. Since the DME, the Middle East's first energy futures and commodities exchange, launched on 1 June 2007 exchange-wide trading has reached a total of 196,131 contracts by the close of November trading. The DME has also seen active trading of its Oman contract as far out as December 2009.
Open interest in the Oman Crude Oil Futures Contract also reached a new record, standing at 11,060 contracts by the close of November trading, an increase of 2,432 on October's previous high of 8,628. Open interest is the number of futures contracts entered into but not yet liquidated by an offsetting transaction or by delivery and is regarded as a leading indicator of success by the industry.
The number of contracts going to physical delivery also reached a new high of 5,997 in November. Equivalent to 5.997 million barrels of oil, this surpasses the Exchange's previous best of 4.283 established when contracts traded in August were delivered successfully in October 2007. The physical delivery of contracts traded on the DME is conducted through the Mina Al Fahal storage and loading facilities located in the Sultanate of Oman.
Welcoming the announcement, Ahmad Sharaf, Chairman of the Dubai Mercantile Exchange, said: "This is a very pleasing way to mark our sixth month of trading and provides compelling evidence that the Oman Crude Oil Futures Contract is establishing itself as the global benchmark for Middle East sour crude oil.
"November's new records in volume, open interest and physical delivery confirm the steady growth that we have experienced since launching the DME in June. We will continue to work with our customers and partners to build on these solid foundations."
Gary King, Chief Executive Officer of the DME, commented: "We are delighted to record yet another strong month of trading as the DME consolidates its position as the Middle East's premier energy futures exchange.
"Market confidence continues to grow with the successful completion of each full trading cycle. More new members are coming on board and we are seeing increasing levels of participation throughout the market as we expand our customer base globally.
"Our Oman Crude Oil Futures Contract has been trading for just six months but the industry is already seeing the advantages of a new benchmark pricing mechanism for Middle East sour crude oil, especially in terms of greater transparency and the more effective management of risk. All our efforts remain focussed on maintaining this remarkable progress."