SINGAPORE: The Murban crude futures contract launched on Monday, the key contract of the new ICE Futures Abu Dhabi (IFAD) oil exchange, offering a potential rival benchmark for trading Middle East crude.
The contract was priced at $63.93 per barrel as of 0100 GMT with 2,132 lots traded, ICE said on Twitter. Each lot is 1,000 barrels.
Abu Dhabi-based IFAD is back by the Intercontinental Exchange Inc, Abu Dhabi National Oil Co. (ADNOC) and partners including international oil majors.
The Murban contract, which prices the flagship Abu Dhabi grade that accounts for more than half of ADNOC’s production, will offer an alternative benchmark to Dubai, operated by S&P Global Platts, and Oman crude futures traded on the Dubai Mercantile Exchange (DME).
The contract will enable traders to hedge Middle East crude and refining margins against the grade. It would also allow traders to compare the values of competing supplies from Russia, Europe and the United States with similar quality to Murban using a range of cash-settled derivatives against Brent, West Texas Intermediate.
The contract prices the crude two months ahead with the first expiry month set for June. It is a physically delivered contract with delivery at Fujairah in the United Arab Emirates on a free-on-board (FOB) basis.
Other partners in IFAD include BP, Total, Inpex, Vitol, Shell, PetroChina , South Korea’s GS Caltex, Japan’s Eneos Holdings and Thailand’s PTT Plc. IFAD’s launch was delayed by nearly a year due to the COVID-19 pandemic.
ADNOC will set the monthly official selling price (OSP) for Murban based on the futures contract and price its other three grades, Das, Umm Lulu and Upper Zakum, at differentials to the Murban contract.
Murban is considered as a light sweet crude and has an API gravity of 39.9 degrees and a sulfur content of 0.78%, with output of about 2 million barrels per day (bpd), according to ICE. API gravity measures a crude’s density.
The UAE, the third biggest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) behind Saudi Arabia and Iraq, pumps about 2.5 million to 3 million bpd, mostly produced by ADNOC.
Murban crude futures start trading at new ICE, Abu Dhabi exchange
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Murban crude futures start trading at new ICE, Abu Dhabi exchange
- The contract will enable traders to hedge Middle East crude and refining margins against the grade
Saudi Exports launches ‘Saudi Crafts’ brand at ‘Made in Saudi’ exhibition in collaboration with Heritage Commission
RIYADH: Saudi Export Development Authority, known as Saudi Exports, represented by the “Made in Saudi” program, in collaboration with the Heritage Commission, has officially launched the “Saudi Crafts” brand as a sub-brand under the national “Saudi Made” umbrella, coinciding with the Year of Handicrafts.
The announcement was made during the third edition of the “Made in Saudi” exhibition, held at the Riyadh International Convention and Exhibition Center in Malham from Dec. 15 to 17.
The launch builds on the initial unveiling of the brand during the Saudi International Handicrafts Week, also known as Banan, in November, marking a new step in developing the handicrafts sector, empowering male and female artisans, and strengthening the presence of their products within the national industrial ecosystem.
The “Saudi Crafts” brand aims to showcase Saudi handicrafts as products that embody creativity, authenticity, and quality, presented in a contemporary manner that enhances their competitiveness in local and global markets under the national “Saudi Made” brand.
This year’s Made in Saudi exhibition has allocated dedicated spaces to display artisans’ products, highlight national craftsmanship skills, and connect artisans with supporting entities and potential buyers, boosting growth opportunities and reinforcing the role of Saudi handicrafts as part of the Kingdom’s cultural and economic identity.
The official launch of the Saudi Crafts brand represents a significant milestone in joint national efforts to develop creative industries, support the sustainability of local crafts, and expand the presence of Saudi products in domestic and international markets.
