UAE - Mubasher: The Abu Dhabi National Oil Company (ADNOC) and Intercontinental Exchange (ICE) are preparing to launch the ICE Futures Abu Dhabi (IFAD) and the trading of ICE Murban Crude Oil Futures on 29 March 2021.
The first Murban futures contract will be physically delivered two months ahead, with the first contract for June delivery to expire at the end of April, according to a recent press release.
In March 2020, ADNOC applied the pricing mechanism of its crude oil, while the company is currently using Platts Dubai to identify the selling price of Murban.
By the beginning of April, the company will replace the current Murban pricing mechanism with the ICE Murban Futures Contract for the June contract.
At the same time, Upper Zakum, Das, and Umm Lulu grades will be priced at a differential to the announced Murban price.
ADNOC’s Executive Director of Downstream Industry, Marketing, and Trading (DM&T), Khaled Salmeen, said: "Today’s announcements are another important step as we prepare, together with ICE, our customers, and our partners, for the launch of this important new exchange and futures contract."
It is noteworthy to mention that in November 2019, ICE announced its plans to launch a new exchange, ICE Futures Abu Dhabi (IFAD), with ADNOC and nine of the world's largest energy traders in Abu Dhabi Global Market (ADGM).