Front month volume was up by 20%, with total exchange volume increasing by 11%
The Dubai Mercantile Exchange (DME), the premier international energy futures exchange in the Middle East, recorded a 23% increase year-on-year in physical delivery volumes during 2022. More than 181 million barrels were delivered and shipped through the exchange in 2022, compared to 147 million in 2021. Since inception in 2007, DME has now supplied over 3 billion barrels of Omani crude via its physical and EFP mechanism.
Trading volumes on DME were also significantly higher as the global trading community embraced its price discovery mechanism as an essential risk management and hedging instrument during the period of high volatility seen in energy markets during 2022. DME registered a 20% increase in front month volume, whilst recording an 11% increase across the full curve, reinforcing the price transparency and liquidity that led most major Middle East National Oil Companies (NOCs) to utilize the DME Oman Sour crude futures benchmark as part of their export pricing formulas.
Raid Al-Salami, Managing Director, DME said: “Our performance in 2022 reflects the importance of DME Oman as the preferred benchmark and price discovery mechanism for sour crude in the East of Suez market. These increased trading volumes highlight the contract as the most reliable and transparent benchmark for sour crude heading to Asian markets.”
Al-Salami concluded:” The increase in physical delivery demonstrates the high confidence in our delivery mechanism. DME remains focused on delivering world class services to our producers, traders and refiners, to maintain the exchange’s position as the home of the most reliable sour crude benchmark in the world.”