Volume Growth Driven By Strong Asian Interest in Oman Crude Oil Futures Contract
Dubai - 25 September, 2007: The Dubai Mercantile Exchange Limited (DME) today announced that a record 100,000 contracts, with a value of approximately US $5.25 billion*, have been traded on the Exchange in less than four months since its launch on 1 June 2007.
The DME reached this key milestone for exchange-wide contracts traded following a steady increase in the trading of its benchmark Oman Crude Oil Futures Contract during the month of September. Trading on the DME has averaged 1,863 contracts per day since the start of the month.
This surge in volumes has been supported by a number of important factors, including confirmation earlier this month of the successful physical delivery of DME futures contracts traded during the month of June and the opening of the Exchange's trading floor. The DME has also seen continued growth and increased trading activity as new participants enter the market on a daily basis. Strong interest and growing support from the Asian market has been instrumental in reaching this important target.
Of particular significance is the increase in both trading activity and open interest in the futures contracts listed for delivery in 2008. In recent weeks the DME has seen active trading as far as the December 2008 contract. This increased activity provides greater transparency for the trading and pricing of Middle East sour crude oil for all market participants and is expected to help attract even further interest across key trading centres. Exchange wide open interest is currently at 4,907, an increase of 2,600 since the beginning of September.
Commenting on the announcement, Ahmad Sharaf, Chairman of the DME said: "We are delighted to have reached this major milestone less than four months since our historic launch. The continued growth in volumes and open interest through December 2008 is evidence of the continued strong and ever growing acceptance of the Oman Crude Oil Futures Contract among energy traders around the world.
Gary King, Chief Executive Officer of the DME added: "Following a relatively quiet period over the summer months, we are pleased to see new participants entering the market. Especially gratifying is the volume growth that we are experiencing out of Asia. We believe that this enhanced interest from the Asian market reflects increased confidence in the Oman Crude Oil Futures Contract and its physical delivery mechanism.
Mr. King continued: "In launching the DME, we aimed to establish a premier international energy futures and commodities exchange and to create a global benchmark for the pricing of Middle East sour crude oil. We are confident that we are now well on our way to realising these objectives."
* This figure has been calculated by multiplying the daily settlement price by the number of Oman Crude Oil Futures Contracts traded per trade date. This figure excludes the QN and QW spread contracts