Dubai: The Department of Oil Affairs in the Government of Dubai has announced that it had notified its customers that the official price of Dubai crude oil to be delivered next June, will be equal to the average daily settlement price of the Oman Crude Oil Financial Contract in Dubai Mercantile Exchange contracts traded over the next month.
The department sets the price of Dubai crude oil in the markets in parallel with Oman oil prices, which reinforces the transparency of pricing process commitment and setting a fair value of crude oil in the Middle East.
The official monthly price of Dubai crude oil — with the transition to the pricing of futures contracts — is determined in advance, for a differential price is placed before three months, “M-3”, while the official final monthly price is determined at the end of the second month, “M-2”.
DME Oman crude oil is considered as a benchmark for pricing crude oil by the countries that produce it, and it gives them a differential price that reflects the quality of the product.
Everyday at 12.30pm Dubai time, Dubai Mercantile Exchange determines the daily settlement price of the Oman contract, which is the average price of transactions made within five minutes from 12.25pm to 12.30pm Dubai time.
On the last circulating day of the month, the settlement’s window lasts for thirty minutes from 12pm until 12.30pm, Dubai time.