The first trade in Middle East fuel oil derivatives has taken place on the Dubai Mercantile Exchange (DME).
Middle East 180cst and 380cst high-sulfur fuel oil was recently listed and these contracts settle against the MOPAG 180cst and MOPAG 380cst assessments provided by Platts.
DME says that these listings allow traders to directly hedge fuel oil delivered in the Gulf region and to trade the important spread between the Middle East and Singapore fuel oil markets. It adds that it is a significant step towards helping the Gulf ‘realise its full potential as a refined product trading hub’.
The trade was for around 45,000 barrels of July 180cst fuel oil and was concluded between Vitol and Aegean Marine.
Chris Bake, member of the executive committee at Vitol says: ‘Vitol is strongly committed to the development of the Fujairah oil hub and this new derivatives contract represents a big step forward in Fujairah’s evolution from a pure logistics hub into a major trading centre.’