Oman Launches Floating Storage For DME Crude Delivery

reuters logo Oman Tank Terminal Company (OTTCO) said it has awarded three companies access to a 2.1 million barrels of crude floating storage facility that would boost trading in crude oil futures on the Dubai Mercantile Exchange (DME).

The facility, which will be at Oman’s Mina al-Fahal, will help to increase monthly trade volumes on the DME and also help to curb price volatility, trade sources told Reuters in April.

Representation Purpose Image - Photograph by Avneet Kaur Oberoi
Representation Purpose Image – Photograph by Avneet Kaur Oberoi

“Three customers – China Oil, Glencore and Oman Trading International (OTI) – have won bids for access to the facility on board a Very Large Crude Carrier (VLCC), which will be provided and operated by Oman Shipping Company (OSC),” OTTCO said in a statement received by Reuters on Sunday.

The storage will make more oil available that can be delivered against the futures contracts.

OTTCO, majority owned by the state-run Oman Oil Company (OOC), is a joint venture between OOC and Takamul Investment Company.

(Reporting by Rania El Gamal, editing by William Hardy)

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