The exchange plans to launch a futures contract in the first quarter of 1999 based on the average price of benchmark Oman and Dubai crudes.

Primarily geared to the Asian crude market, it would also serve to link the global markets through Nymex's existing crude futures contract in the United States, and the Brent contract traded on the International Petroleum Exchange (IPE) in London.

"If we saw consistent daily volume in the 5,000 contracts range after a year, I would say that is almost a smashing success," he told Reuters in an interview.

But turnover of just a few hundred lots -- a volume that has plagued other oil futures contracts in Asia -- "would not be, by my measure."

Nymex officials are in Singapore aiming to finalise an agreement with local authorities on establishing Nymex'sACCESS trading screens in the Singapore International Monetary Exchange (Simex).

By launching a crude futures contract geared to Asian users, Nymex wants to succeed where others have failed.

Previous crude and oil product futures contracts have largely failed to muster trade support in Asia and most have floundered.

Simex currently lists a Brent contract, in a mutual offset arrangement with the IPE, but trade has slumped to a few hundred contracts per day.

"That is the nagging feeling," Thompson said. "Have we done enough? Is this what the marketplace will be able to ultimately latch onto? The past is not exactly one of the more positive things we could draw upon in terms of a measure of possible success."

Apart from volume, Thompson said the exchange would look at other indicators, including the number of market users and their business profiles, plus hoping for more than 10,000 contracts in open interest at the end of the first year.

"The more breadth we see beginning to develop in that respectwill be a strong indication of the overall utility of the contract, at least at minimum, as a price mechanism," he said.

Nymex, the IPE and Simex, are discussing a global electronic trading system that would link Nymex crudes, the IPE's Brent and the Nymex Middle East contract, once it is launched. That would help liquidity.

Energy deregulation and the need for a central marketplace to reduce counter-party risk, which has grown during the Asian crisis of the past year, would also support the launch of a Middle East crude contract, Nymex officials said.

Nymex currently has 350 ACCESS trading screens worldwide, mostly situated in the United States, including 30-35 in Asia through links with the Sydney Futures Exchange and the Hong Kong Futures exchange.

ACCESS operates 18 hours a day, outside of open outcry trading in New York and lists a variety of oil and commodities futures and options.