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Which crude oil streams are priced off the DME Oman benchmark?

April 26, 2017benchmark crude DME Oil Oman Streams

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Which crude oil streams are priced off the DME Oman benchmark?

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A. The DME Oman benchmark is used to price the entire production volumes of both Oman and Dubai crudes, the historic markers in the East of Suez. Since the launch of DME in June 2007, the Sultanate of Oman has set its Official Selling Prices (OSPs) on a forward pricing basis using the monthly average of the DME Oman daily settlements (calculated as of 1630 Singapore time). In June 2009, the Dubai Department of Petroleum Affairs (DPA) announced its adoption of a forward OSP formula explicitly-linked to DME Oman daily settlements. The DPA independently sets and announces price differentials used to calculate Dubai monthly OSPs (e.g., Dubai OSP = Month Avg. of DME Oman settlements +/- monthly differential).