ADNOC issues March IFAD-based OSP for Murban crude at $85.11/b

Abu Dhabi National Oil Co. set the March official selling price for its flagship Murban crude oil at $85.11/b, up $10.75/b from $74.36/b for the February OSP, the company said in a Feb. 4 pricing letter.

The increase in the Murban OPS comes after OPEC+ decided on Feb. 2 to hike its oil production ceiling by 400,000 b/d for March as planned, with oil prices breaching a seven-year high of $90/b. S&P Global Platts assessed Dated Brent on Feb.4 at $97.66/b, up 4.5% on the day.

ADNOC set the March OSP differential for Umm Lulu at a 5 cent/b premium to the Murban OSP, unchanged from February, for an equivalent of $85.16/b.

The March differential for Das Blend was set at a discount of 40 cents/b to the Murban OSP, down from minus 35 cents/b in February, for an equivalent of $84.71/b.

The differential for Upper Zakum was set at a discount of $1.55/b to the Murban OSP, the same as February, for an equivalent of $83.56/b.

ADNOC and ICE launched the UAE-based IFAD -- on which the Murban futures contract and 18 cash-settled derivatives and inter-commodity spreads trade -- on March 29, 2021.

IFAD Singapore marker

The OSPs for Murban exports are based on the monthly average of the IFAD Murban Singapore marker first line futures, which go to delivery two months ahead of the month of trade.

The ICE Futures Abu Dhabi Exchange Singapore marker price for March Murban crude futures closed at $91.65/b on Jan. 31, the last trading day for the contract.

The average of the Singapore marker price for IFAD March Murban futures was $85.109/b, compared with an average of $74.364/b for the February Murban contract in December.

The March IFAD Murban differential to March Dubai futures averaged $3.83/b in January, Platts data showed. The spread reflects the IFAD Murban Singapore minute marker premium to same-month Dubai crude futures timestamped at the IFAD Singapore close.

In December, the February Murban contract averaged at a premium of $2.87/b to February Dubai futures.