UAE - Dubai - Part 1 - Dubai & The Other Producers.Officially the United Arab Emirates United Arab Emirates, federation of sheikhdoms (2005 est. pop. 2,563,000), c.30,000 sq mi (77,700 sq km), SE Arabia, on the Persian Gulf and the Gulf of Oman. (UAE) is a member of OPEC OPEC: see Organization of Petroleum Exporting Countries.
in full Organization of the Petroleum Exporting Countries
Multinational organization established in 1960 to coordinate the petroleum production and export policies of its . But in reality only the emirate of Abu Dhabi takes part in and abides by OPEC decisions. The other six UAE emirates have their own policies concerning petroleum and each one of them has an authority in charge of this sector.
The crude oil production capacity of Dubai has fallen to 100,000 b/d despite an EOR system based on natural gas injection, It has been falling steadily from a peak of 425,000 b/d in October/November 1990.
Dubai crude oil is a world marker for trading in heavy/sour grades. Iran and its GCC neighbours base their east-bound crude oil sales prices on the average spot market value of the Dubai and Oman export grades (see Part 2).
The Dubai Mercantile Exchange Located within the Dubai International Financial Centre, the Dubai Mercantile Exchange (DME) is set to become the first energy futures exchange in the Middle East. The aim of the DME is to provide price transparency and market liquidity for petroleum products in the region. (DME) is being established as a joint venture (JV) between the local government's Dubai Holding and the New York Mercantile Exchange New York Mercantile Exchange (NYMEX)
The world's largest physical commodity futures exchange. (NYMEX See New York Mercantile Exchange.
See New York Mercantile Exchange (NYM). ). Having received support from Oman, the DME is to adopt a Persian Gulf sour crude oil futures contract in an electronic trading platform, with an open outcry system.
According to the DME promoters, crude oil futures trading will begin by the fourth quarter of 2006. The DME will be regulated by the Dubai Financial Services Authority (see Part 3).