“Intercontinental Exchange” to launch the futures contract for “Murban” in the...
The “Intercontinental Exchange” said yesterday, Monday, that it plans to launch the “Abu Dhabi Intercontinental Exchange of Futures” and trade in the futures contracts for “Murban” crude in the late first quarter of 2021.
Last year, the Abu Dhabi National Oil Company (ADNOC) said that Murban crude would be traded on a new local exchange. The Abu Dhabi Intercontinental Futures Exchange, which will be jointly owned by Abu Dhabi and several major oil companies, and the Intercontinental Exchange, which also includes Brent trading.
Murban is one of the finest crude oil in the world thanks to its unique chemical properties, stable production levels, attractiveness and popularity with international buyers, production partners and long-term concessions.
The “Intercontinental Exchange” said in a statement: “The futures contracts for (Murban) crude for the (Intercontinental Exchange) will be present delivery contracts with delivery in Fujairah, UAE, on a FOB basis.”
She added that the contract “will be completed by a set of derivatives that are settled in cash, which (Abu Dhabi Intercontinental Exchange Futures Contract) plans to launch on the first day of trading.”
The new contract will create a standard alternative to the standard most commonly used in the Middle East; “Standard crude for Dubai – Oman” managed by the “Dubai Energy Exchange” and is traded on the electronic platform of the “Chicago Mercantile Exchange”.
The “Intercontinental Exchange” said that it wanted to launch the “Abu Dhabi Intercontinental Exchange Futures Exchange” in the first half of 2020 to include “Murban” crude, but the plan was postponed pending regulatory approvals and permits in light of the uncertain market conditions.
The companies that agreed to participate in the stock exchange include BP, Total, Inpex, Vitol, Shell, PetroChina, Korea’s GS Caltex, and Japan’s JXTG. And Thai PTT.
Murban light crude production ranges between 1.6 and 1.7 million barrels per day. The UAE usually sells oil directly to clients, who are mainly in Asia, based on retroactive pricing rather than on the forward pricing used by oil producers; Saudi Arabia, Kuwait and Iraq.
The UAE, the third largest producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia and Iraq, pumps between 2.5 million and 3 million barrels per day, most of it from ADNOC.
The crude “Almarban” differs from “Propane”. The latter is one of the liquid gases that are produced from natural gas processing operations after its extraction, or from oil refining processes. OPEC countries are interested in it because of a large global demand on the one hand; And because it is not subject to OPEC production quotas on the other hand.
And “propane” has several uses; It is used as fuel in homes and cars. It is also used in “water heating” operations, even in the industrial and agricultural sectors, and is considered an essential input in the petrochemical industry. Propane is a colorless, odorless gas. And it is transported in special ships similar to ships that transport liquefied gas.
Last year, the Abu Dhabi National Oil Company (ADNOC) said that Murban crude would be traded on a new local exchange. The Abu Dhabi Intercontinental Futures Exchange, which will be jointly owned by Abu Dhabi and several major oil companies, and the Intercontinental Exchange, which also includes Brent trading.
Murban is one of the finest crude oil in the world thanks to its unique chemical properties, stable production levels, attractiveness and popularity with international buyers, production partners and long-term concessions.
The “Intercontinental Exchange” said in a statement: “The futures contracts for (Murban) crude for the (Intercontinental Exchange) will be present delivery contracts with delivery in Fujairah, UAE, on a FOB basis.”
She added that the contract “will be completed by a set of derivatives that are settled in cash, which (Abu Dhabi Intercontinental Exchange Futures Contract) plans to launch on the first day of trading.”
The new contract will create a standard alternative to the standard most commonly used in the Middle East; “Standard crude for Dubai – Oman” managed by the “Dubai Energy Exchange” and is traded on the electronic platform of the “Chicago Mercantile Exchange”.
The “Intercontinental Exchange” said that it wanted to launch the “Abu Dhabi Intercontinental Exchange Futures Exchange” in the first half of 2020 to include “Murban” crude, but the plan was postponed pending regulatory approvals and permits in light of the uncertain market conditions.
The companies that agreed to participate in the stock exchange include BP, Total, Inpex, Vitol, Shell, PetroChina, Korea’s GS Caltex, and Japan’s JXTG. And Thai PTT.
Murban light crude production ranges between 1.6 and 1.7 million barrels per day. The UAE usually sells oil directly to clients, who are mainly in Asia, based on retroactive pricing rather than on the forward pricing used by oil producers; Saudi Arabia, Kuwait and Iraq.
The UAE, the third largest producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia and Iraq, pumps between 2.5 million and 3 million barrels per day, most of it from ADNOC.
The crude “Almarban” differs from “Propane”. The latter is one of the liquid gases that are produced from natural gas processing operations after its extraction, or from oil refining processes. OPEC countries are interested in it because of a large global demand on the one hand; And because it is not subject to OPEC production quotas on the other hand.
And “propane” has several uses; It is used as fuel in homes and cars. It is also used in “water heating” operations, even in the industrial and agricultural sectors, and is considered an essential input in the petrochemical industry. Propane is a colorless, odorless gas. And it is transported in special ships similar to ships that transport liquefied gas.
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