The Dubai Mercantile Exchange (DME) hosted the second Basrah Light crude oil auction on 31 May 2017.
Almost 50 bids were received from 15 participating companies and the two million barrel cargo was awarded at a premium of 37 cents to the July Basrah Light Official Selling Price (OSP), which will be published by Iraq state oil company SOMO in the second week of June.
The highest bid of +37 cents was six cents higher than the June Basrah Auction, which was awarded at OSP +31 cents.
DME is an energy-focused commodities exchange in the Middle East and home to the world’s third crude benchmark.
Launched in June 2007, with the goal of bringing fair and transparent price discovery and efficient risk management to the East of Suez, DME lists the Oman Crude Oil Futures Contract (DME Oman) as its flagship contract, providing the most fair and transparent crude oil benchmark for the region. DME Oman is the explicit and sole benchmark for Oman and Dubai crude oil OSPs – historically established markers for the Middle Eastern crude oil exports to Asia.
DME is a joint venture between Dubai Holding, Oman Investment Fund and CME Group. In addition to its core shareholders, global financial institutions and energy trading firms such as Goldman Sachs, J.P. Morgan, Morgan Stanley, Shell, Vitol and Concord Energy have taken equity stakes in DME, providing the exchange with a resounding vote of confidence by major players in global energy markets.
