Abu Dhabi’s position as a global energy hub reinforced as ICE Murban Futures launches on new IFAD commodities exchange
The Abu Dhabi National Oil Company (ADNOC) and Intercontinental Exchange (ICE) have, recently officially celebrated the start of trading of the UAE’s flagship crude oil, Murban, as a Futures contract on the new ICE Futures Abu Dhabi (IFAD) commodities exchange.
The high-profile launch event at Abu Dhabi Global Market (ADGM) was attended by HH Sheikh Mansoor Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, UAE.
The introduction of the world’s first Murban Futures contract is the latest step in ADNOC’s ongoing transformation into a more market and customer centric organization. By making Murban a freely traded crude, similar to Brent or WTI, customers have better price transparency, flexibility to hedge and manage risks and increased access to Murban crude.
Alongside ICE and ADNOC, nine of the world’s largest energy companies and traders are joining IFAD as founding partners. This includes BP, GS Caltex, INPEX, ENEOS, PetroChina, PTT, Shell, Total and Vitol. Representatives from the partner companies joined today’s launch event at ADGM, many participating virtually from around the world.
“This is a historic moment for ADNOC, Abu Dhabi, and the UAE as we celebrate the launch of the IFAD exchange with ICE and, with our partners, capitalize on the growing demand for high-quality Murban crude oil, particularly from markets in Asia,” commented Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO, ADNOC.
“This historic and strategic milestone reinforces the UAE and Abu Dhabi’s status as a leading global energy hub and underscores ADNOC’s central role as a catalyst to empower the UAE’s economic ambitions.” He added
Earlier this month, ADNOC announced that its Murban, Upper Zakum, Das and Umm Lulu crude grades will all be sold destination free, from June, allowing its crude oils to become a freely-traded commodity.
Discovered in 1958, Murban has played a pivotal role as the bedrock of the UAE’s sustained economic development.
ICE Murban Futures are physically delivered contracts, with one futures contract equating to 1,000 barrels of Murban crude oil delivered from the ADNOC Terminal located in Fujairah, on the East coast of the UAE. Murban is ADNOC’s flagship crude grade, with production capacity of over 2 million barrels per day at present.
It currently accounts for around 50% of the UAE’s total production capacity, with plans in place to increase the production of Murban to more than 2.5 million barrels per day by 2030, in line with ADNOC’s goal of growing its production capacity to 5 million barrels of crude per day.
“With our outstanding partners, we are bringing a new benchmark to life, and just as Murban has powered the UAE for the past 50 years, with this new futures contract there is a tremendous future ahead for Murban as a price marker for global energy markets,” noted Jeffrey C. Sprecher, Chairman and CEO, Intercontinental Exchange.
“The launch of ICE Futures Abu Dhabi further reinforces Abu Dhabi’s status as a global energy hub,” remarked Ahmed Ali Al Sayegh, Minister of State (UAE) and Chairman of Abu Dhabi Global Market.
Murban Futures will trade globally on the ICE platform, one of the world’s foremost energy exchange networks. All trades clear through ICE Clear Europe, based in London. From today, Murban now trades alongside ICE Brent and ICE WTI in the ICE network.
