Abu Dhabi National Oil Company (ADNOC) will change its crude oil pricing system from November 1, moving from Murban crude futures to prompt-month Platts Dubai pricing as the main benchmark.
The ADNOC Oil Pricing Change will apply to all of the company’s crude grades, including Murban, Das, Umm Lulu and Upper Zakum. The company said the new system will better match official selling prices with the actual month of cargo loading.
Under the updated method, ADNOC will announce price differences compared with Dubai quotes during the month before shipments are loaded. The company said the move will improve transparency for customers and investors.
ADNOC stated that the new pricing system supports its goal of providing a clearer and more effective pricing structure for its growing global customer base.
The company also confirmed that it will continue meeting all delivery commitments for its Abu Dhabi crude grades. The change will not affect existing supply obligations with customers.
The decision follows recent challenges in global oil markets. Disruptions linked to conflict in the Middle East affected oil movements through the Strait of Hormuz and created uncertainty for traders involved in Abu Dhabi crude markets.
ADNOC has been discussing possible changes to its official selling prices with customers since June. The company has also sold some crude cargoes through spot tenders using differentials linked to Dubai pricing.
A crude trader described the announcement as a sudden move. However, ADNOC said the pricing update is part of its efforts to create a more transparent market system.
The company added that the ADNOC Oil Pricing Change is not expected to have a major impact on its listed financial instruments. This includes bonds and other financial products issued under ADNOC Murban’s global medium-term note and Sukuk programmes.
Following ADNOC’s announcement, ICE Futures Abu Dhabi said it will continue trading Murban crude futures contracts that currently have open interest. Contracts without open interest will be suspended.
The future of the Murban futures market remains under review. The exchange operator did not immediately provide further details about possible changes after the current contracts are completed.
ICE Futures Abu Dhabi was created to develop Murban crude futures into a global benchmark. The goal was to provide Middle East oil producers with a transparent, exchange-based pricing system.
The Murban futures contract became an important part of efforts to increase the role of Abu Dhabi crude in international energy markets. The contract allowed traders and investors to manage price risks linked to regional oil supplies.
The shift to Platts Dubai pricing reflects changes in the way ADNOC wants to manage its crude sales. By using a benchmark closer to physical loading periods, the company expects to provide a pricing system that better reflects market conditions.
Oil markets have faced increased uncertainty due to supply concerns, geopolitical events and changing demand patterns. Energy companies around the world have continued adjusting their strategies to manage these challenges.
ADNOC remains one of the largest oil producers in the region and plays an important role in global energy supply. The company produces several crude grades that are exported to international markets.
The ADNOC Oil Pricing Change marks a significant update in the company’s approach to crude sales. The new benchmark system will begin in November and will apply across ADNOC’s onshore and offshore crude production.
Industry participants will continue watching how the new pricing method affects trading activity, market transparency and the wider regional oil market.
