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ICE to launch new exchange to host world’s first Murban crude futures contracts

Intercontinental Exchange (ICE) is to launch a new exchange, ICE Futures Abu Dhabi (IFAD), to host what it claims will be the world’s first futures contracts based on Abu Dhabi National Oil Company’s (ADNOC) Murban crude oil. 

On 4 November 2019, Abu Dhabi’s Supreme Petroleum Council (SPC) announced that it would implement a new pricing mechanism for ADNOC’s Murban crude. As a result, Murban pricing will move from a retroactive official selling price to market-driven, forward pricing using a Murban futures contract as its price marker. The SPC also authorised ADNOC to remove destination restrictions on Murban crude sales. 

HE Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO,  comments: ‘For the first time, Murban will be priced on a forward looking, market driven basis based off the ICE Murban future, offering the market greater transparency and certainty. The launch of ICE Futures Abu Dhabi further reinforces Abu Dhabi’s status as a global energy hub, and supports ADNOC’s continued transformation into a more modern and progressive energy company.’

Murban crude is a light sweet crude produced by ADNOC. The company produces around 3mn b/d of oil, of which some 1.7mn b/d is Murban crude.

 

News Item details


Journal title: Petroleum Review

Countries: UAE -

Subjects: Trading, Oil markets, Oil

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