The Dubai Mercantile Exchange (DME) has reached an agreement with Oman for its crude to be used to back a Middle East sour crude futures contract, to be launched in the fourth quarter.

‘While the Middle East is the world’s largest hydrocarbon region, it has yet to develop a transparent futures contract,’ says DME chief executive officer Gary King. ‘The two leading crude oil futures benchmarks, West Texas Intermediate and Brent, reflect the value of sweet crude oil, and are therefore not representative of Middle East sour crude oils.’

The DME is a joint venture of Tatweer, part of Dubai Holding, and the New York Mercantile Exchange (NYMEX MEED 27:1:06).