World News
Dubai Mercantile Exchange Lists Two New Fuel Oil Derivatives
The Dubai Mercantile Exchange (DME) Thursday announced the listing of two new fuel oil contracts to hedge the price differentials between Middle East fuel oil and Singapore fuel oil.
The contracts are both available to be traded immediately, listed on DME as "Singapore vs. Middle East Fuel Oil 180 cst Spread Futures" (Code DSM) and "Singapore vs. Middle East Fuel Oil 380 cst Spread Futures" (Code DSI).
DME says the new contracts complement existing DME fuel oil contracts, and settle against Platts' MOPS/MOPAG 180 cst and MOPS/MOPAG 380 cst assessments.
The listings are said to offer another tool for traders to hedge fuel oil in the Middle East against Singapore fuel oil markets, as well as Middle East fuel oil against the DME's flagship Oman crude oil contract, and generous margin offsets.
"DME has been really pleased with the response to our initial Fujairah derivatives offering and so we are delighted to be expanding the range of Fujairah products that we offer," said Owain Johnson, Managing Director of DME.
"DME is committed to supporting the development of a vibrant derivatives market based around Fujairah assessments."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 655.50 | 2.00 | 808.50 | 4.50 |
| Rotterdam | 619.00 | 0.00 | 789.00 | 8.00 |
| Houston | 628.50 | 7.50 | 812.50 | 1.50 |
| Fujairah | 653.50 | 4.50 | 900.00 | 2.50 |
| Global 20 Ports Average | 672.00 | 0.50 | 885.00 | 7.00 |
| Global 4 Ports Average | 639.00 | 2.50 | 827.50 | 2.00 |
| Global Average Bunker Price | 727.50 | 1.50 | 933.50 | 5.00 |
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