Why are oil traders winding down their positions in Murban crude futures on the IFAD exchange?

Traders are squaring out Murban crude futures positions on ICE Futures Abu Dhabi (IFAD) because ADNOC announced it will change its pricing mechanism effective November 1, shifting from Murban futures to prompt-month Platts Dubai pricing for setting official selling prices (OSPs) of all its crude grades—including Murban, Das, Umm Lulu, and Upper Zakum—rendering the Murban futures contract no longer relevant for hedging OSP exposure.

What is the new benchmark ADNOC will use for its official selling prices, and how does it differ from the previous method?

ADNOC will use prompt-month Platts Dubai pricing instead of Murban crude futures to benchmark monthly official selling prices (OSPs), with differentials to Dubai quotes announced one month before cargo loadings; this change aligns OSPs more closely with the actual month of loading and replaces the prior reliance on Murban futures as the hedging reference.

Oil traders set to wind down UAE exchange positions after ADNOC benchmark change

Aug 3, 2026

ADNOC will switch its crude pricing mechanism from Murban futures to Platts Dubai benchmarks starting November 1. Consequently, traders are winding down positions on the ICE Futures Abu Dhabi exchange as the hedging tool becomes less relevant.

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Oil traders set to wind down UAE exchange positions after ADNOC benchmark change

Oil traders set to wind down UAE exchange positions after ADNOC benchmark change

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