Kuwait will be using the DME Oman Futures contract as a price reference for its crude oil exports to Asia from 1 February 2020. The Gulf producer currently uses a combination of Platts Oman and Platts Dubai when pricing its key 31° API Kuwait Export Blend grade, as well as the 48° API Super Light grade. But going forward, KPC will use DME Oman and Platts Dubai, following in the footsteps of Saudi Aramco which made the same switch in 2018. Aramco’s VP for marketing, sales and supply planning Ahmed Subaey, told MEES at the time that improved liquidity meant that DME was now “the most important Oman price-discovery tool in the Asia-Pacific region” rather than Platts (MEES, 21 September 2018).
The move is a much-needed fillip for DME, which has just seen Abu Dhabi partner with ICE and a range of high-profile players commit to launching Murban as a rival regional benchmark (MEES, 15 November 2019). DME’s key advantage is that the light Murban grade is not reflective of the bulk of the region’s medium-heavy crudes. As Middle East producers shake up their pricing, Qatar has confirmed it will switch to forward pricing from February (MEES, 20 December 2019). (CONTINUED - 192 WORDS)
