Sign in Subscribe
Mining industry

Dubai Gold & Commodities Exchange to Launch Energy and Fuel Oil Derivatives Contracts

Strategic Insights

— 1 min read

The Dubai Gold & Commodities Exchange (DGCX), the first commodities derivative exchange in the Middle East, will introduce energy and fuel oil derivatives contracts from the end of October. The exchange aims to gain a foothold in the energy sector, with a major marketing campaign to promote its new services. The Fujairah 380 CST High Sulfur Fuel Oil Futures Contract will be the first product, launching on October 30, followed by six consecutive forward month contracts.

Key Takeaways:

  • The DGCX will launch the Fujairah 380 CST High Sulfur Fuel Oil Futures Contract on October 30, trading in lots of 100 metric tonnes of 4.5 per cent sulphur and 380 centistoke fuel oil.
  • The contract will be followed by six consecutive forward month contracts, with January 2007 as the near-month contract.
  • The DGCX plans to trade gasoline derivatives next year, expanding its portfolio of energy and fuel oil derivatives contracts.
  • Colin Griffith, Chairman of DGCX, believes that trading energy and fuel oil derivatives closer to the region will facilitate price discovery for a commodity crucial to the region's energy sector.
  • To promote its new services, the DGCX will launch a major marketing campaign, starting at the Oil Barons' Ball in Dubai in November.
  • The campaign aims to reach up to 2,000 energy executives from around the region, linking the DGCX name with the region's expansive energy sector.

Statistics:

  • The Fujairah 380 CST High Sulfur Fuel Oil Futures Contract will have a lot size of 100 metric tonnes.
  • The contract will trade in 4.5 per cent sulphur and 380 centistoke fuel oil.
  • The first contract will launch on October 30, 2006.
  • The DGCX will offer six consecutive forward month contracts, with the near-month contract being January 2007.
  • Up to 2,000 energy executives from around the region are expected to attend the Oil Barons' Ball in Dubai in November 2006.

Sources:

  • Asia Pulse, October 20, 2006
  • Dubai Gold & Commodities Exchange (DGCX), [no date]

Read more