Dubai narrowed the discount for oil to be loaded in June to 45 cents less than Oman Crude Futures, after April and May cargoes were priced at the lowest differential since the emirate began using the benchmark.
The sheikhdom, the second-largest in the United Arab Emirates, reduced the discount by 25 cents from the differential set for May, according to an e-mailed statement from the emirate’s Department of Petroleum Affairs today.
Dubai prices its oil as a premium or a discount to Oman’s official selling price, which is determined through trading on the Dubai Mercantile Exchange. The DME is part owned by Oman’s sovereign wealth fund and by Chicago-based CME Group Inc.
Dubai, which owns a stake in the DME through a government-run investment fund, began pricing its high-sulfur crude in relation to the Oman variety in September 2009. The DME is seeking to establish the Oman contract as a more widely used benchmark among Middle Eastern producers.