For the carbon-intensive energy sources being transitioned away from, commoditisation is far more advanced. But pricing and standards rarely stand still for long and the era of energy transition will challenge existing norms like never before.
Oil markets have long been at the vanguard of pricing evolution, and from time to time, we’ll delve into these markets to learn how they may evolve over the transition and ask if they can offer any lessons to those vying to replace them.
Producing and transporting nearly a quarter of the worlds crude oil, no discussion on fossil fuel or environmental policy is complete without a deep dive into understanding the workings of the Middle East crude market.
To help guide us through this terrain, David is joined by Russell Robertson, Chief Commercial Officer at the Dubai Mercantile Exchange (DME). Also on the episode, and joining David as co-host is Aabha Gandhi, Pricing Director at General Index.
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About DME
DME is the premier international energy futures and commodities exchange in the Middle East, home to the world’s third crude benchmark.
Launched in 2007, DME brings fair and transparent price discovery and efficient risk management to the East of Suez. The DME lists the Oman Crude Oil Futures contract (DME Oman) as its flagship contract, providing the most fair and transparent crude oil benchmarks for the region. DME Oman is the explicit and sole benchmark for Oman and Dubai crude oil Official Selling Prices (OSPs) – historically established markers for Middle Eastern crude oil exports to Asia.
What is The Price Of Everything?
Welcome to The Price of Everything, a podcast that aims to shine a light on pricing. The cost of commodities – energy, food, etc. – play such an important role in our lives: accounting for around $5trillion worth of worldwide trade. But how are those prices actually calculated? Why do they move up and down so much? And what’s next?
The Price of Everything is the first podcast dedicated purely to how pricing works. Introduced by Neil Bradford, Founder & CEO of General Index (GX), and hosted by David Elward, Senior Pricing Analyst at GX, The Price of Everything takes listeners through how the world’s commodities are priced and what the future looks like for them in the age of climate change and the energy transition.
In this second series, we’re exploring the new markets coming to prominence, and how commoditisation in those sectors – hydrogen, voluntary carbon, sustainable aviation fuel and others – is often elusive; pricing and standards far less well defined; and value derived by their capacity to help combat climate change.