Dubai Mercantile Exchange lists new Middle East fuel oil derivatives

The Dubai Mercantile Exchange, the premier international energy futures and commodities exchange in the Middle East, on Wednesday announced two new fuel oil contracts to hedge the price differentials between Middle East fuel oil and Singapore fuel oil.

The contracts will be listed on the DME as "Singapore vs. Middle East Fuel Oil 180 cst Spread Futures (Code DSM)" and "Singapore vs. Middle East Fuel Oil 380 cst Spread Futures (Code DSI)" and are available to trade immediately.

The new contracts complement the existing DME fuel oil contracts and will settle against MOPS/MOPAG 180 cst and MOPS/MOPAG 380 cst assessments provided by price reporting agency Platts, the DME said.

The listings add a further tool for traders to hedge fuel oil in the Middle East region against Singapore fuel oil markets. Middle East fuel oil can also be hedged against the DME’s flagship Oman crude oil contract, with generous margin offsets available.

Owain Johnson, Managing Director, DME said, "DME has been really pleased with the response to our initial Fujairah derivatives offering and so we are delighted to be expanding the range of Fujairah products that we offer. DME is committed to supporting the development of a vibrant derivatives market based around Fujairah assessments."

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