In a world first, the UAE’s flagship crude oil, Murban, is now being traded as a futures contract on the new Intercontinental Exchange (ICE) Futures Abu Dhabi (IFAD) commodities exchange.
Murban will now be traded alongside Brent, WTI and other leading futures contracts in the ICE network around the world, and will clear through ICE Clear Europe in London, UK. Trading was launched by ICE and Abu Dhabi National Oil Company (ADNOC) on 29 March 2021 at an event attended by His Highness, Sheikh Mansoor Bin Zayed Al Nahyan, the UAE’s deputy prime minister and minister of presidential affairs, alongside representatives from nine of the world’s largest energy companies and traders – BP, GS Caltex, INPEX, ENEOS, PetroChina, PTT, Shell, Total and Vitol – who joined virtually from around the globe.
One Murban futures contract equates to 1,000 bbl of Murban crude oil delivered from the ADNOC Terminal located in Fujairah, UAE. ADNOC currently has the capacity to produce more than 2 million bpd of Murban, around 50% of the UAE’s total production capacity. ADNOC has plans to produce 2.5 million bpd by 2030, as part of its goal of increasing overall production to 5 million bbl bpd.
‘The launch of the world’s first Murban Futures contract makes our largest crude grade even more attractive to the global market, enabling ADNOC’s customers and market participants to better price, manage and trade their purchases of Murban. Murban crude is recognised the world over for its intrinsic chemical qualities, consistent and stable production volumes, large number of international buyers, and numerous long-term concession and production partners. In making Murban a freely traded global commodity, it becomes even more attractive to market participants and will deliver greater value to ADNOC and its partners,’ says Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO.
ADNOC announced earlier in March 2021 that Murban, Upper Zakum, Das and Umm Lulu crude grades will all be sold destination free, from June 2021, allowing them to be freely traded. Murban was discovered in 1958, and has since played an important role in the economic development of the UAE. ADNOC says that the new futures contract means that Murban ‘enters a new era, further solidifying Abu Dhabi’s position as a global energy hub and a reliable and essential energy provider to the world.’
‘Our sincere congratulations to ICE, ADNOC and the nine global energy companies, on the successful launch of ICE Futures Abu Dhabi exchange (IFAD). This is the first derivatives exchange in Abu Dhabi and set up at ADGM. We are proud to be the preferred jurisdiction of IFAD and home to the world’s foremost Murban Crude Oil Futures contract. The launch of ICE Futures Abu Dhabi further reinforces Abu Dhabi’s status as a global energy hub,’ says Ahmed Ali Al Sayegh, UAE minister of state and chairman of Abu Dhabi Global Market.