DME Oman Crude Oil Futures Contract
Encyclopedia
Launched by the Dubai Mercantile Exchange
(DME) on 1 June 2007, the DME Oman Crude Oil Futures Contract (OQD) is the Asian crude oil pricing benchmark. The contract is traded on the CME Group
’s electronic platform CME Globex, and cleared through CME Clearport.
*: the exchanged opened on the 1st June 2007.
(OTC) contracts.
The contracts are:
The two main contracts which traded immediately were the DOO and the DOB with over 1.7 Moilbbl traded in the first week of their launch.
Dubai Mercantile Exchange
The Dubai Mercantile Exchange is a commodity exchange based in Dubai currently listing its flagship futures contract, DME Oman Crude Oil Futures Contract...
(DME) on 1 June 2007, the DME Oman Crude Oil Futures Contract (OQD) is the Asian crude oil pricing benchmark. The contract is traded on the CME Group
CME Group
The CME Group bases prices for US gasoline on Brent Crude rather than West Texas Intermediate Crude , which many believe is responsible for artificially high gas prices for US consumers...
’s electronic platform CME Globex, and cleared through CME Clearport.
Contract specifications
| Trading unit | 1000 barrels (159 m³). |
|---|---|
| Price quotation | U.S. dollars and cents per barrel. |
| Trading symbol | OQD |
| Trading hours | Electronic trading is open from 1800 U.S. Eastern Standard Time (EST) and closes at 1715 EST the next day, Sunday to Friday. Singapore is 13 hours ahead of EST and Dubai is 9 hours ahead. The time difference is reduced by one hour when Daylight Saving Time is in effect. Neither Dubai nor Singapore observes Daylight Saving Time. |
| Trading months | The current year and the next five years will be listed. A new calendar year will be added following the termination of trading in the December contract of the current year. |
| Minimum price fluctuation | $0.01 (1) per barrel ($10.00 per contract). |
| Maximum daily price fluctuation | None. |
| Daily settlement | A daily OSP settlement price will be published as at 1630 (Singapore) 0330 or 0430 EST. This price represents the weighted average price of trades in the nearby Contract Month between 1625 and 1630 (Singapore). The DME will also publish an end of trading day settlement price for all listed Contract Months, determined as at 1430 EST, which coincides with the end of the trading day for NYMEX Light Sweet Crude Oil. This latter settlement price is used by the Clearing House to calculate daily variation margin on all open DME Contracts. |
| Final settlement price | The Final Settlement Price for a Contract Month shall be the OSP settlement price on the last Trading Day of the Contract Month. This price represents the weighted average price of trades in the nearby Contract Month between 1615 and 1630 (Singapore). The Final Settlement Price will be used for purposes of margins for delivery of the Oil. |
| Last Trading Day | Trading in the nearby Contract Month shall cease on the last Trading Day of the second month preceding the Delivery Month. |
| Settlement Type | Physical. |
| Delivery | F.O.B at the Loading Port, consistent with current terminal operations. Complete delivery rules and provisions are detailed in Chapter 10 of the rulebook. |
| Governing law | English Law. |
Statistics
| 2007* | 2008 | 2009 | 2010 | |
|---|---|---|---|---|
| Average daily volume | 1357000 bbl (215,745.8 m³) | 1274000 bbl (202,549.8 m³) | 2156000 bbl (342,776.6 m³) | 2944000 bbl (468,058.6 m³) |
| Total trade volume | 200892000 bbl (31,939,275.7 m³) | 322294000 bbl (51,240,651.3 m³) | 551866000 bbl (87,739,682.5 m³) | 744727000 bbl (118,402,131.2 m³) |
| Total physical deliveries | 17203000 bbl (2,735,058.4 m³) | 95369000 bbl (15,162,459.3 m³) | 104380000 bbl (16,595,093.9 m³) | 144892000 bbl (23,035,987.1 m³) |
*: the exchanged opened on the 1st June 2007.
DME Oman linked contracts
On the 5th December 2010, NYMEX launched six DME Oman-linked contracts, traded bilaterally and cleared through CME Clearport. These new DME Oman-linked contracts complement the OQD Futures contract and give market participants regulated and transparent Over-The-CounterOver-the-counter (finance)
Within the derivatives markets, many products are traded through exchanges. An exchange has the benefit of facilitating liquidity and also mitigates all credit risk concerning the default of a member of the exchange. Products traded on the exchange must be well standardised to transparent trading....
(OTC) contracts.
The contracts are:
- DME Oman Crude Oil Swap Futures (DOO)
- DME Oman Crude Oil BALMO Swap Futures (DOB)
- ICE Brent vs. DME Oman Crude Oil Swap Futures (DBO)
- DME Oman Crude Oil Average Price Option (DOA)
- Singapore MOGAS 92 Unleaded (Platts) vs. DME Oman Crude Oil Swap Futures (DNB)
- Singapore Gasoil (Platts) vs. DME Oman Crude Oil Swap Future (DZB)
The two main contracts which traded immediately were the DOO and the DOB with over 1.7 Moilbbl traded in the first week of their launch.
See also
- West Texas IntermediateWest Texas IntermediateWest Texas Intermediate , also known as Texas light sweet, is a grade of crude oil used as a benchmark in oil pricing. It is a light and sweet crude oil...
- Dubai Mercantile ExchangeDubai Mercantile ExchangeThe Dubai Mercantile Exchange is a commodity exchange based in Dubai currently listing its flagship futures contract, DME Oman Crude Oil Futures Contract...
- CME GroupCME GroupThe CME Group bases prices for US gasoline on Brent Crude rather than West Texas Intermediate Crude , which many believe is responsible for artificially high gas prices for US consumers...
- The Chicago Mercantile Exchange
- NYMEX
- Petroleum Development of Oman
- Commodity Futures Trading CommissionCommodity Futures Trading CommissionThe U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
- Dubai Financial Services Authority
- List of futures exchanges
- List of traded commodities