Adnoc has shaken up its crude pricing formula in a bold bid to transform its flagship Murban crude grade into a regional benchmark. Murban is to be listed as a futures contract from mid-2020, and critically Abu Dhabi has lifted destination restrictions.

Adnoc says it will work with customers and “other stakeholders” in the coming months to finetune implementation of the new “market-driven, transparent, forward pricing” mechanism which it plans to roll out in either 2Q or 3Q 2020. The Abu Dhabi state firm says this will enable “customers and the market to better price, trade, and manage their crude requirements” and that it expects it to “demonstrate a highly liquid forward price curve, given the market appetite for Middle East crude.” (CONTINUED - 275 WORDS)