RIL, India‘s energy giant announced its membership with Dubai Mercantile Exchange on Wednesday. The DME deems it the first major enterprise in India to embark on a direct participation in a global oil future market, which reflects a persistent growth of Asian oil production. This membership decision is pulled off at a phase when the exchange was enjoying a boom with its trade pass crossing the 3 billion barrel mark this year, in the month of May.
Ahmad Sharaf, DME’s chairman expressed his delightedness on the announcement stating that this membership of the world’s premier energy companies manifests the position that DME holds as a top energy future and commodity exchange and will pave way for it into the fast progressing East of Suez crude oil corridor. He also mentioned that this membership was coincidental to their fifth anniversary when they have muscled their way to success. Speaking about the exchange, he stated that it is the leading energy futures and commodity exchange in the Middle East that caters to the provision of a financially safe, organized, and transparent trading environment. He believes that international membership of the top-notch players like Reliance Group will help them leverage their position in the coming five years when he expects the Asian Oil Market to grow at a tremendous rate.
The DME, majority owned by CME Group Inc., is a fully- electronic exchange with its contracts listed on the CME Globex. Based on the growth of its Oman Future Contract that is the world’s third official benchmark for Oil trading, it foresees an increasing Asian demand for Oil in the global arena.
Mukesh Ambani led RIL is the country’s largest private sector owning the Jamnagar refinery, one of the largest refineries in the world and the biggest in India with the highest crude oil processing capacity at any particular location in the world. Its processing capacity accounts to 1.24 million barrels per day. It will be the 26th off floor member of the DME.