Gasoline futures contract planned for Dubai
Posted: 28 August 2006
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Dubai Multi-Commodities Centre says it is in the exploratory stages of developing a gasoline contract, to be traded on the Dubai Gold and Commodities Exchange in 2007.
Dr Tilak K. Doshi, the centre˙s executive director for energy, said: ´Gasoline pricing practices in the Middle East are in need of serious reform, having long ceased to adequately serve the region˙s need for an efficient and transparent pricing system.
´In an era of ever higher and volatile prices, this contract would provide an efficient tool to hedge price risk for both consumers and refiners in the East of Suez region.ˇ
Gasoline is the only hydrocarbon fuel in which the Middle East as a region is net short, with Iran rating as one of the world˙s largest importers of the product.
Framroze Pochara, the exchange˙s CEO, said: ´An efficient price discovery mechanism for gasoline in the region would further consolidate the storage and blending centres of Jebel Ali and Fujairah in their role of linking the exports of the Mediterranean and Asia to the requirements of the Middle East and Africa .ˇ
Currently, the physical trade in gasoline involves a wide number of industry participants, ranging from national oil companies to trading houses and major oil companies. Key players such as BP, Emarat, ENOC, Shell, Trafigura and Vitol are already active players in Dubai ˙s role as the hub of gasoline trade. |
