Emirates joins jet fuel futures working group

Dubai-based airline Emirates has joined the working group set up by the Dubai Mercantile Exchange (DME) and ENOC Supply & Trading to explore the development of the first physically delivered jet fuel futures contract.

The group, which expects to start its activities by the end of November, aims to have in place a draft proposal by the end of the year with a view to listing a jet fuel contract on the DME during the second half of 2007.

The parties will focus on combining the DME’s efforts to develop an energy futures exchange with leveraging ENOC’s expertise in the refining and trading of jet fuel, and Emirates’ position as a major consumer of jet fuel. The working group will include other representatives from the refining, trading and aviation industries.

The working group will engage a wider audience of industry players, including other regional producers and trading houses, for the purpose of creating a futures contract that meets their risk management needs.