Dubai Mercantile Exchange (DME) on Thursday saw a significant uptick in the price of its flagship Oman crude oil futures contract (DME Oman) contract with the price crossing US$108 per barrel, an increase of more than US$1 on the previous day s settlement price.
DME said the significant jump in prices of the DME Oman contract is being driven by sentiment related to escalating tensions in Iraq and the current internal military turbulence. In Oman, news of tropical storm Nanauk, which is expected to hit the coast of Oman on 15th June, has also led to increased prices for DME Oman crude oil.
Christopher Fix, Chief Executive of DME, said, “In recent weeks the energy markets have experienced unusually low levels of price volatility, but this situation looks to have ended. These unfortunate recent developments in oil producing nations such as Iraq in addition to the potential impact of the tropical storm in Oman have reintroduced volatility into the Middle East oil market. Investors looking to protect their positions should use DME Oman futures to manage their hedging strategies as DME is the exchange that best reflects the realities of Middle East-Asian trade flows.” DME is the premier international energy futures and commodities exchange in the Middle East. It aims to provide oil producers, traders and consumers engaged in the East of Suez markets with transparent pricing of crude oil.
Source : WAM News Agency for United Arab Emirates
