Dubai
Mercantile Marks First Six Months With Further Trading
Records In November
Steady Growth Continues As Volume,
Open Interest and Physical Delivery Hit New Highs
Dubai – 6 December 2007:
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.”
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