Price of a barrel of Dubai oil for August delivery equals to average daily settlement price for DME Oman

Dubai, July, 1, 2012 (WAM) - The Department of Oil Affairs in the government of Dubai announced that the official selling price for Dubai oil in August will be equal to the Oman future contract for that month. This is the first time that the oil price per barrel stabilizes for Dubai oil for two consecutive months, concerning Oman contract, which is the benchmark for pricing crude oil by the oil producing countries and gives better crude price reflecting the quality of the product. The department informed Emirates News Agency, " WAM" that it has notified its customers that the official price of Dubai crude oil, which will be delivered next August, will be equal per barrel for the average daily settlement price of the DME Oman Crude Oil Financial Contract in Dubai Mercantile Exchange contracts traded during the next month. The department sets the price of Dubai crude oil in the markets in parallel with Oman oil prices, which reinforces the transparency of pricing process commitment and setting a fair value of crude oil in the Middle East. The official monthly price of Dubai crude oil - with the transition to the pricing futures contracts - is determined in advance, for a differential price is placed before three months, "M-3", while the official final monthly price is determined at the end of the second month " M-2 ". The DME Oman crude oil is considered as 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. Everyday at 12:30 p.m. (Dubai time), Dubai Mercantile Exchange determines the daily settlement price of the Oman contract, which is the average price of transactions made within five minutes from 12:25 p.m. to 12:30 p.m., Dubai time. On the last circulating day of the month, the settlement's window lasts for thirty minutes from 12:00 p.m. until 12:30 p.m., Dubai time. – Emirates News Agency, WAM