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Dubai launch the first oil futures contract in the region

Posted: 29 May 2008

Dubai Gold & Commodities Exchange (DGCX) launched the first oil futures contracts in the Middle East.

Speaking at the occasion, Sultan Bin Sulayem said, "I congratulate DGCX and their members on the launch of West Texas Intermediate Light Sweet Crude Oil (DWTI) and Brent Crude Oil (DBRC) futures. The contracts mark the beginning of a new phase in the region's commodity trade.

"Having direct access to trade the world's most widely used energy futures markets locally provides numerous benefits to regional market participants. It enables both regional and international liquidity pools to meet and transact business. DGCX has made an impressive commitment - that of expanding the derivatives trade in the region. And I wish them success as they do so," he added.

The products seek to increase the portfolio of investors offering new risk management tools, beside providing time and cost efficiencies. A strategic initiative, the crude oil contracts are set to launch the next stage of growth for DGCX.

Oil prices reached record highs of $135 a barrel, as the launch was announced, Goldman Sachs predict that oil prices will reach $200 a barrel.

Dubai Gold and Commodities Exchange (DGCX) is a fully automated, online commodities exchange. Located in Dubai, the exchange is the first international commodities derivatives marketplace in the Middle East.

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