SUBSCRIBER NOTE: Platts to launch Murban differential to Dubai

In response to market feedback, S&P Global Platts will launch an assessment of Murban crude oil versus Dubai with effect from July 2, 2018.

The new assessment will capture the spread between the outright value of Abu Dhabi's Murban crude for loading two months forward versus the Platts Dubai crude assessment published during the same calendar month. During July, the assessment would reflect the value of Murban crude loading in September against the average value of Platts Dubai cash assessments during September, equivalent in value to the September Dubai derivative.

Spot physical crudes in the Middle East typically trade as a differential against either the official selling price for that grade, or against Platts Dubai during the loading month. Platts already publishes the Murban spread against the OSP.

Murban is one of the five grades deliverable into the Platts Dubai crude oil benchmark, alongside Oman, Upper Zakum and Al-Shaheen. Deliveries of Murban into Dubai see a quality premium paid by the buyer to the seller.

Murban crude is produced at onshore fields in Abu Dhabi and is exported from Jebel Dhanna and Fujairah. A publicly available assay of the grade indicates an API of 40.5 degrees and sulfur content of 0.743%. The stream is one of the largest in the Middle East and has increasingly been visible in the spot market as a broadly fungible grade.

The onshore fields are operated by ADNOC Onshore, which are 60% held by ADNOC while the remaining stakes are held by BP (10%), Total (10%), CNPC (8%), JODCO (5%), CEFC (4%) and GS Energy (3%).

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