Oman crude price soars to $90.41/barrel, reaching 11-month high

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Oman crude oil prices, traded via Dubai Mercantile Exchange (DME), surged to $90.41 per barrel on September 6, 2023, marking the highest level in 11 months. The last time prices reached a similar level was on October 7, 2022, when it peaked at $90.69 per barrel. This recent increase in prices reflects the growing optimism in the global oil market, driven by various factors such as supply concerns and increasing demand.

DME — partly owned by Oman Investment Authority (OIA) — has played a crucial role in facilitating the trading of Oman crude oil futures contracts. Since its launch, a total of 19,856,259 contracts have been traded, demonstrating the exchange's significance in the energy market.

The October 2023 contract for Oman crude oil had an official selling price (OSP) of $86.57, indicating a premium over the spot price due to market expectations. This higher OSP reflects the positive sentiment surrounding the oil industry and suggests that the market anticipates sustained demand in the coming months.

Moreover, the total delivery of Oman crude oil for the current period amounted to 14.616 million barrels, further underlining the strong demand for this particular grade of crude oil. This delivery volume signifies the confidence of market participants in Oman crude oil's quality and its ability to meet global energy requirements.

The robust trading activity on the DME is also evident from the total exchange volume of 97,381 contracts. This figure illustrates the substantial interest and participation of market players in the Oman crude oil futures market. The average daily volume (ADV) stands at an impressive 4,234 contracts, reflecting the consistent engagement of traders and investors in the market.

Meanwhile, DME said in a statement that Oman’s Ministry of Energy and Minerals (MEM) recently utilised the DME auctions platform to sell a shipment of 2 million barrels of Oman crude. The November-loading barrel cargo was successfully sold at a premium of $0.21 per barrel above the November 2023 Official Selling Price (OSP).

The DME Auction platform attracted 14 participants, who submitted a total of 16 bids within a 2-minute timeframe. The Oman OSP is determined by calculating the average price of DME Oman Crude Oil (OQD) Marker Prices on a daily basis throughout the month.

Investors and traders closely monitor the price movements of Oman crude oil due to its significance in the global energy landscape. The recent surge in prices is attributed to various factors, including geopolitical tensions and supply constraints. DME is a leading international energy futures exchange that also lists the Oman Crude Oil Futures Contract (DME Oman) as its flagship physically settled contract — a key benchmark of Middle East crude pricing.