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New platform for 1st Murban crude futures contracts to be launched in ADGM

New platform for 1st Murban crude futures contracts to be launched in ADGM
The new exchange is expected to launch in the first half of 2020

Abu Dhabi – Mubasher: Intercontinental Exchange on Monday announced that it will launch of a new exchange, ICE Futures Abu Dhabi (IFAD), in Abu Dhabi Global Market (ADGM) to host the first future contracts based on Abu Dhabi National Oil Company’s (ADNOC) Murban crude oil.

Earlier in November, Abu Dhabi’s Supreme Petroleum Council (SPC) announced that it decided to implement a new price mechanism for Murban crude, according to a statement.  

Accordingly, “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 statement showed.

Contracts traded at IFAD will be cleared at ICE Clear Europe, alongside ICE Brent, ICE WTI, ICE (Platts) Dubai, and ICE Low Sulphur Gasoil, “allowing customers to benefit from associated margin offsets and delivering meaningful capital efficiencies.”

“ICE Murban Futures will be a physically delivered contract with delivery at Fujairah in the UAE.” 

The new exchange, subject to regulatory approval, is expected to launch in the first half of 2020.  

“With the launch next year of ICE Futures Abu Dhabi, Murban futures will sit alongside the most significant global oil benchmarks, providing the opportunity for the first time for a much larger group of participants to trade and hedge Murban in a regulated, transparent and accessible venue,” Intercontinental Exchange’s chairman and CEO, Jeffrey C. Sprecher, stated.