Adnoc Shifts Crude Pricing to Regional Benchmark Amid Market Fluctuations
The United Arab Emirates' state oil company, Abu Dhabi National Oil (Adnoc), is changing its crude pricing method due to sharp market fluctuations. Adnoc will now use a regional Dubai benchmark published by Platts instead of the ICE Futures Abu Dhabi Murban contract, which was introduced in 2021. This change will come into effect from November 1 for all Adnoc onshore and offshore crudes.
The decision is aimed at bringing the UAE's pricing mechanism more in line with other regional producers like Saudi Arabia. The shift is also significant for Asian oil refiners, who typically dominate the buying of Adnoc's barrels.
The change in pricing will also mean that prices will be announced a month prior to loading instead of two months ahead as was previously done. This move comes after wild swings in benchmark prices, which have caused disruptions in crude flows through the Strait of Hormuz due to the Iran war.