ICE to launch Mid-East sour crude futures contract

19 April 2007 16:09  [Source: ICIS news]

SINGAPORE (ICIS news)--The Intercontinental Exchange (ICE) has announced plans to launch a Middle East sour crude oil futures contract on 21 May, a company press release said on Thursday.

 

The move by ICE follows an announcement earlier on Thursday by rival Dubai Mercantile Exchange (DME) that it has pushed back the launch date for its keenly awaited Oman futures contract to 1 June from 1 May.

 

The new ICE Middle East sour crude oil futures contract, which still requires UK regulatory approval, will be cash-settled against the Platts Dubai physical cash price assessment. The DME Oman futures contract will allow for physical delivery.

 

“We believe this will be particularly useful for producers, refiners and hedgers in Asia and the Middle East, as well as complementary to our highly liquid Brent and WTI contracts,” said David Peniket, ICE Futures president and COO (chief operating officer).

 

Approximately 70% of total Middle East crude exports are exported to Far East buyers. The Middle East also has over 60% of the world’s proven oil reserves.

 

The ICE Middle East sour crude futures contract will trade continuously for 22 hours a day – from 01:00 to 23:00 local London time (BST).

 

Daily contract settlement will take place at 19:30 local London time with final settlement upon expiration at 09:30 local London time (BST)

 

The ICE crude futures contract is sized at 1,000 barrels, with the contract price quoted in US dollars.

By: James Dennis
+65 6780 4359

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