ADNOC to base OSPs for crude exports on Murban futures contract from June: ICE

London — Official selling prices for Abu Dhabi National Oil Co.'s crude exports will be based on the soon-to-be-launched ICE Murban Futures Contract from June, the Intercontinental Exchange said Feb. 24.

The OSP for ADNOC's flagship Murban crude will directly reflect the futures contract, while the Upper Zakum, Das and Umm Lulu grades will be priced at a differential to the Murban price as set by the futures contract.

ICE plans to launch an Abu Dhabi-based exchange, on which the Murban futures contract and related cash-settled derivatives and inter-commodity spreads will trade, on March 29, subject to regulatory approval.

The Murban contract will go to physical delivery two months ahead, making June the first contract month at launch with expiry at the end of April, ICE said.

"These new contracts will be incredibly beneficial to the energy market, bringing for the first time the ability to hedge Murban price risk," said Jamal Oulhadj, president of ICE Futures Abu Dhabi. "Murban is ... widely used by refineries, and globally recognized for its consistent quality and stable production volumes, as well as its large number of buyers around the world, and as such we believe Murban futures have an important role to play in global crude pricing."