Kuwait Will Set A New Pricing Mechanism For Crude Oil From February 2020

Dubai, Dec. 25 (xinhua) -- Kuwait petroleum corporation (KPC) will use the DME Oman futures contract as a reference for Kuwait's crude oil exports to Asia from February 1, the dubai mercantile exchange (DME), the largest energy futures exchange in the Middle East, said.


DME Oman is widely recognized as the most effective and transparent price discovery and risk management tool in the regional sour oil market. Oman blend is highly representative of the quality of most middle eastern crude and is therefore an ideal price indicator for oil exports in the region.


DME managing director Raid al-salami said: "Oman's historic role as a reliable benchmark combined with first-class technology, market regulation and physical delivery makes DME Oman a very compelling benchmark for national oil companies looking to find transparent prices for their crude oil exports."


"We welcome the Kuwait oil company and are pleased that they have decided to switch part of their programme to DME Oman. We attach great importance to the trust and confidence that Kuwaiti oil gives us, and we are committed to providing reliable risk management and pricing benchmarks for the region."


The DME Oman oil futures contract is the official benchmark for five producers in the Middle East, all of which use exchange-marked prices in their crude export contracts with Asian customers. The five producers are Oman, dubai, Saudi Arabia, bahrain and Kuwait.


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