ADNOC may list crudes other than Murban on ICE Futures Abu Dhabi
Abu Dhabi National Oil Co., the UAE’s biggest energy company, may list crudes besides its flagship Murban grade on ICE Futures Abu Dhabi as part of plans of having broader participation on the exchange, which will be launched March 29, a company official said March 4.
ADNOC and the Intercontinental Exchange are launching the Abu Dhabi-based exchange on which the Murban futures contract, and related cash-settled derivatives and inter-commodity spreads, will trade subject to regulatory approval.
The official selling prices for Murban exports will be based on the futures contract. OSPs for ADNOC’s Upper Zakum, Das and Umm Lulu grades will be priced at a differential to Murban.
“With our partners we made the choice to basically price those other grades against the Murban to funnel this liquidity into the exchange so everybody has a very solid and liquid market to price on the exchange,” Philippe Khoury, executive vice president, trading and sales at ADNOC, said during the Asian Refining Virtual Summit organized by S&P Global Platts.
“We do not exclude that other crudes from the region could come along the Murban, price either against the Murban or be listed on IFAD under their own name; different grades, which would enrich IFAD with a different kind of cuts, crude qualities and have a broader bench of crudes priced through the same exchange.”
IFAD is being launched with nine partner companies that include BP, GS Caltex of South Korea, Japanese companies Inpex and ENEOS, PetroChina, Thailand ‘s PTT, Shell, Total and Vitol.