Difference between revisions of "Middle East crude oil futures"

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The first attempt was by the [[Singapore International Monetary Exchange]] (Simex) in June 1990, but the contract based on Dubai pricing was terminated in February 1992. The [[International Petroleum Exchange]], now part of the [[IntercontinentalExchange]] followed with its own Dubai-based contract in July 1990, just before the start of the first Gulf war, and trading ended in May 1991 before termination in November 1992.
The first attempt was by the [[Singapore International Monetary Exchange]] (Simex) in June 1990, but the contract based on Dubai pricing was terminated in February 1992. The [[International Petroleum Exchange]], now part of the [[IntercontinentalExchange]] followed with its own Dubai-based contract in July 1990, just before the start of the first Gulf war, and trading ended in May 1991 before termination in November 1992.


The Nymex launched a contract in April 2001 based on the Oman/Dubai crude price, but traded for only two days and was terminated in April 2001.
The NYMEX launched a contract in April 2001 based on the Oman/Dubai crude price, but traded for only two days and was terminated in April 2001.
In April 2002, the [[Singapore Exchange]] and the [[Tokyo Commodity Exchange]] (Tocom) announced plans to cooperate on the launch of the Middle Eastern Crude Oil (MECO) futures on SGX<ref>{{cite web|url=http://www.tocom.or.jp/news/2002/20020403.html|org=Tokyo Commodity Exchange|name=MoU|date=December 18, 2007}}</ref>. The Tocom had an existing Middle East crude oil futures contract priced in yen in a locals-only market, based on the average Oman/Dubai crude price published by Platts.  The Singapore contract was launched in November 2002, but failed to gain liquidity.
In April 2002, the [[Singapore Exchange]] and the [[Tokyo Commodity Exchange]] (Tocom) announced plans to cooperate on the launch of the Middle Eastern Crude Oil (MECO) futures on SGX<ref>{{cite web|url=http://www.tocom.or.jp/news/2002/20020403.html|org=Tokyo Commodity Exchange|name=MoU|date=December 18, 2007}}</ref>. The Tocom had an existing Middle East crude oil futures contract priced in yen in a locals-only market, based on the average Oman/Dubai crude price published by Platts.  The Singapore contract was launched in November 2002, but failed to gain liquidity.


== Nymex versus ICE ==
== NYMEX versus ICE ==


The fierce energy-market rivalry between the Nymex and the ICE shifted to Middle East crude in 2007 as both exchanges backed a fresh effort to establish a new benchmark.
The fierce energy-market rivalry between the NYMEX and the ICE shifted to Middle East crude in 2007 as both exchanges backed a fresh effort to establish a new benchmark.


The [[ICE Middle East Sour Crude Oil]] futures contract was launched on May 21, 200, an an electronically-traded, cash-settled product based on crude oil from Dubai, Oman and Upper Zakum, which originates in Abu Dhabi. The contract is settled against the Platts Dubai physical cash price assessment<ref>{{cite web|url=https://www.theice.com/publicdocs/futures/ICE_Middle_East_Sour_Crude_Futures_Spec.pdf|org=ICE|=name=ICE|name=Contract Specifications|date=December 14, 2007}}</ref>.
The [[ICE Middle East Sour Crude Oil]] futures contract was launched on May 21, 200, an an electronically-traded, cash-settled product based on crude oil from Dubai, Oman and Upper Zakum, which originates in Abu Dhabi. The contract is settled against the Platts Dubai physical cash price assessment<ref>{{cite web|url=https://www.theice.com/publicdocs/futures/ICE_Middle_East_Sour_Crude_Futures_Spec.pdf|org=ICE|=name=ICE|name=Contract Specifications|date=December 14, 2007}}</ref>.


The Nymex product traced its roots back to co-operation with the governments of Dubai and Oman to create a benchmark using the Dubai-Oman price for crudes sold in the Asia-Pacific market.
The NYMEX product traced its roots back to co-operation with the governments of Dubai and Oman to create a benchmark using the Dubai-Oman price for crudes sold in the Asia-Pacific market.


The two governments signed a memorandum of understanding in February 2006 and pledged to use the contract scheduled for launch on the state-backed [[Dubai Mercantile Exchange]] to price their own oil production<ref>{{cite web|url= http://www.reuters.com/article/governmentFilingsNews/idUSL3026179120070530|org=Reuters|name=DME Oman oil futures get last-minute Dubai boost|date=December 18, 2007}}</ref>. The physically-delivered [[Oman Crude Oil Futures Contract]] was launched on June 1, 2007
The two governments signed a memorandum of understanding in February 2006 and pledged to use the contract scheduled for launch on the state-backed [[Dubai Mercantile Exchange]] to price their own oil production<ref>{{cite web|url= http://www.reuters.com/article/governmentFilingsNews/idUSL3026179120070530|org=Reuters|name=DME Oman oil futures get last-minute Dubai boost|date=December 18, 2007}}</ref>. The physically-delivered [[Oman Crude Oil Futures Contract]] was launched on June 1, 2007

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