Generous margin offsets for oil derivatives in Dubai
The contracts will be listed on the DME as "Singapore vs. Middle East Fuel Oil 180 cst Spread Futures (Code DSM)" and "Singapore vs. Middle East Fuel Oil 380 cst Spread Futures (Code DSI)" and are available to trade immediately.
The new contracts complement the existing DME fuel oil contracts and will settle against MOPS/MOPAG 180 cst and MOPS/MOPAG 380 cst assessments provided by Platts, the DME said.
The listings add a further tool for traders to hedge fuel oil in the Middle East region against Singapore fuel oil markets.
Middle East fuel oil can also be hedged against the DME’s flagship Oman crude oil contract, with generous margin offsets available. ■