Difference between revisions of "Middle East crude oil futures"

Jump to navigation Jump to search
m
Text replace - "IntercontinentalExchange" to "Intercontinental Exchange"
m (Text replace - "Nymex" to "NYMEX")
m (Text replace - "IntercontinentalExchange" to "Intercontinental Exchange")
Line 1: Line 1:
{{TT_adbox}}
{{TT_adbox}}
There have been multiple efforts to establish a third global benchmark for oil prices using Middle East crude alongside the established [[West Texas Intermediate (WTI)]] and [[Brent crude]] contract specifications<ref>{{cite web|url= http://www.reuters.com/article/companyNewsAndPR/idUSL1743182720070517|org=Reuters|name=Factbox|date=December 18, 2007}}</ref>. The [[IntercontinentalExchange]] and the [[New York Mercantile Exchange]], through its investment in the [[Dubai Mercantile Exchange]], are currently embroiled in competition to secure this role through competing futures contracts launched in 2007.
There have been multiple efforts to establish a third global benchmark for oil prices using Middle East crude alongside the established [[West Texas Intermediate (WTI)]] and [[Brent crude]] contract specifications<ref>{{cite web|url= http://www.reuters.com/article/companyNewsAndPR/idUSL1743182720070517|org=Reuters|name=Factbox|date=December 18, 2007}}</ref>. The [[Intercontinental Exchange]] and the [[New York Mercantile Exchange]], through its investment in the [[Dubai Mercantile Exchange]], are currently embroiled in competition to secure this role through competing futures contracts launched in 2007.


== Background ==
== Background ==
The demand for a third benchmark to underpin futures contracts reflects the reference of both the WTI and Brent prices to sweet crude, while the bulk of Middle East exports are sour crude with a higher sulfur content. The subsequent "mispricing" of Middle East oil has spawned a number of unsuccessful efforts to launch new futures based on locally-derived prices.
The demand for a third benchmark to underpin futures contracts reflects the reference of both the WTI and Brent prices to sweet crude, while the bulk of Middle East exports are sour crude with a higher sulfur content. The subsequent "mispricing" of Middle East oil has spawned a number of unsuccessful efforts to launch new futures based on locally-derived prices.


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 [[Intercontinental Exchange]] 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.

Navigation menu