October Oman Cargo Sold at OSP +$0.20, reflection of DME Auction
Omans Ministry of Oil and Gas (MOG) sold a cargo of Oman blend crude through DME Auctions on Wednesday, accomplishing a strong premium over the Official Selling Price (OSP) which mirrors the present strength of the Middle East crude oil market, especially in Oman.
The 2-million-barrel cargo of October-loading Oman Blend crude was awarded at a premium of $0.20 per barrel over the October OSP. The DME Auction platform saw 22 participants take part in the auction with 21 dynamic bids placed during the 2-minute period. The Oman OSP is determined on a volume-weighted normal of daily DME Oman Crude Oil (OQD) Marker Prices throughout the month.
Raid Al-Salami, Managing Director, DME, stated: Premium offers placed during the auction underline the high demand for Oman crude oil and other similar grades. This demand is additionally presented by the higher participation in the auction from many major global crude oil traders being able to participate in a transparent and real-time pricing mechanism."
The DME platform has auctioned 37.6 Million Barrels from 4 distinct grades including Oman Crude Oil, Basrah Light, Basrah Heavy and Kimanis. There are more than 60 buyers that are currently enrolled on the DME Auctions platform demonstrating the demand for such barrels, he included.
