Dubai’s DME introduces new platform to trade multiple crude grades

Dubai Mercantile Exchange (DME) has launched the Alternative Crude Ecosystem (ACE), a new bilateral trading platform for trading multiple crude grades through the exchange.

DME is an international energy futures and commodities exchange based at the Dubai International Financial Centre (DIFC).

ACE is available for all participants and will offer traders the opportunity to trade bilateral barrels of Dubai, Upper Zakum, Murban, Basrah Light, Basrah Heavy, Al Shaheen and Oman versus the DME Oman Sour Crude Benchmark futures. This new functionality allows Middle East Crude participants a way to execute multiple Over the Counter (OTC) crude grades as differentials against DME Oman futures.

“ACE is a unique platform where it combines Futures and OTC in one transparent window for the very first time, offering all participants opportunities to optimize their trading activities and manage their exposure across multiple crude grades,” said Raid Al-Salami, managing director, DME.

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The new service offered by DME strengthens UAE’s position as a global oil power. Dubai is also home to Platts Dubai, the primary pricing reference for crude oil delivered to Asian refineries from the Gulf.

Last month, Abu Dhabi launched ICE Futures Abu Dhabi (IFAD) oil exchange, offering a new alternative for trading Middle East crude. The Murban contract, which prices the flagship Abu Dhabi grade that accounts for more than half of ADNOC’s production, enables traders to hedge Middle East crude and refining margins against the grade.