Platts to assess Abu Dhabi Murban crude independent of Quality Premium

Effectively immediately, Platts, part of S&P Global Commodity Insights, will assess Abu Dhabi Murban crude independent of the monthly quality premium applicable to delivery of Murban crude oil upon physical convergence of Dubai, Upper Zakum, Oman, or Al Shaheen partials in the Platts Market on Close assessment process from S&P Global.

Platts Murban assessments will continue to take into consideration bids, offers and trades for the grade heard during the MOC and the broader market.

Previously, in addition to bids, offers and trades for the grade, Platts Murban assessments also took into consideration the QP that is paid by a buyer to a seller for the nomination and delivery of a cargo of Murban crude oil into a physical convergence of Dubai, Al Shaheen, Upper Zakum or Oman partials during the MOC.

Assessing Murban crude independent of the QP will ensure Platts Murban crude assessments continue to closely reflect tradable values for the grade and account for price swings at times of heightened volatility, such as market conditions seen since Russia's invasion of Ukraine.

Platts methodology to calculate the Murban QP will remain the same: Platts will continue to announce the Murban QP on the first publishing day of each month, two months prior to the QP coming into effect. As an example, Platts would announce Murban QP on the first business day of July, for cargoes loading in September. This calendar aligns with typical trading practices, where September cargoes are primarily traded in July.

Platts will continue to publish Murban QP at 60% of the net price differences between Platts front-month Murban assessment and Platts front-month Oman assessment during the full month prior to announcement. For instance, the QP for September-loading cargoes is calculated on data from the full month of June and announced on the first publishing day of July.

A QP of zero is announced if 60% of the observed price difference between the grades is less than 50 cents/b.