Oman Oil Is ‘The Shot’ at Gulf Benchmark, Vitol Says
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Rising Chinese and Indian demand for Persian Gulf crude is increasing the need for a new Middle East oil price benchmark to add transparency to eastbound sales and reflect Asia’s market influence, a Vitol Group executive said.
The Dubai Mercantile Exchange’s Oman futures contract, trading since June 2007, is “the shot” at forging a new benchmark, a reference off which Gulf producers can price the region’s 14 million barrels of daily output, said Chris Bake, managing director of Vitol Dubai.