Dubai – Mubasher: Dubai Mercantile Exchange (DME) recently announced that Kuwait Petroleum Corporation (KPC) will use the DME Oman Futures contract as a price reference for Kuwaiti crude oil exports to Asia starting from 1 February 2020 onwards.
“The combination of Oman’s historical role as a trusted benchmark with best-in-class technology, market regulation and physical delivery makes DME Oman a very compelling benchmark for national oil companies that want transparent price discovery for their crude oil exports,” Raid Al Salami, DME Managing Director, said.
DME Oman crude oil futures contract is an official benchmark for five producers in the Middle East, all of whom use the exchange’s marker price in their crude oil export contracts with Asian customers, according to a statement by DME.
The five producers are Oman, Dubai, Saudi Arabia, Bahrain and now Kuwait.
“We welcome KPC and are delighted by their decision to switch part of their formula to DME Oman. We highly value the trust and the confidence granted to us by KPC and we are committed to providing the region with reliable risk management and price benchmarks,” Al Salami added.