The official price of the Dubai crude oil barrel for delivery in June will be $0.20 less than the average daily settlement price of the Oman Crude Oil Financial Contract in Dubai Mercantile Exchange (DME Oman) contracts traded over April, Emirates 24/7 reported, citing the data from the Department of Oil Affairs of Dubai Government.
As Zawya explained, the official monthly price of Dubai crude is determined in advance. A differential price is placed three months (M-3) in advance, while the official final monthly price is determined at the end of the second month (M-2).
Furthermore, the Department of Oil Affairs’ Director-General, Abdullah Abdul Karim, stated that the price of Dubai crude in the markets is set in parallel with Oman oil prices, reinforcing the transparency of pricing process commitment and setting a fair value for crude oil in the Middle East.
DME Oman crude oil is considered 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.
DME Oman is the premier energy-focused commodities exchange in the East of Suez, and home to the world’s third crude benchmark.