The official price of the Dubai crude oil barrel for delivery next June will be US$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 the next month, according to the Department of Oil Affairs of Dubai Government.
The Department sets the price of Dubai crude in the markets 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, Abdullah Abdul Karim, Director-General, told WAM.
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).
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.
The Dubai Mercantile Exchange Limited (DME) is the premier energy-focused commodities exchange in the East of Suez, and home to the world's third crude benchmark.