ADNOC will switch its oil pricing benchmark to Platts Dubai on November 1.
New benchmark aligns prices with loading month
The Abu Dhabi National Oil Company said the shift will apply to its onshore and offshore crude grades, specifically Murban, Das, Umm Lulu and Upper Zakum. By moving to prompt‑month Platts Dubai pricing, the official selling prices (OSPs) will line up more closely with the month each cargo is loaded. The company explained that this alignment reinforces pricing transparency and gives customers a clearer view of costs tied to the actual loading schedule.
"The new pricing mechanism reinforces ADNOC’s commitment to pricing transparency for its growing customer and investor base," the company said. This statement underscores ADNOC’s effort to provide a consistent pricing framework amid recent market volatility.
The new pricing mechanism reinforces ADNOC’s commitment to pricing transparency for its growing customer and investor base.
— ADNOC
ADNOC added that it will continue to meet all obligations related to the delivery of its Abu Dhabi onshore and offshore crude grades, ensuring supply stability for its customers. The firm also noted that it will announce differentials to Dubai quotes for each grade in the month before cargoes load, giving market participants advance notice of price adjustments.
Market impact and trading adjustments
The company noted that the pricing change is not expected to materially affect any of its listed instruments, including issuances under the Murban GMTN or Sukuk programmes. Since June, ADNOC has been engaging customers about the proposed OSP changes and has been selling crude cargoes via spot tenders at differentials to Dubai quotes, a practice that helps gauge market response ahead of the benchmark shift.
ICE Futures Abu Dhabi confirmed it will keep trading Murban crude futures contracts that have open interest, while contracts without interest will be suspended from Friday. This move aims to preserve liquidity for actively traded contracts while winding down inactive ones.
The timing of the benchmark change follows disruptions caused by the U.S.-Israeli war on Iran, which affected oil exports through the Strait of Hormuz and led to deep hedging losses among traders dealing with Abu Dhabi oil. By adopting the Platts Dubai benchmark, ADNOC seeks to mitigate such volatility and provide a more predictable pricing environment for its growing customer and investor base.
Frequently asked questions
What new pricing benchmark will ADNOC use for its crude from November?
ADNOC will switch its oil pricing benchmark to Platts Dubai starting on November 1, aligning official selling prices with the month of loading.
Which ADNOC crude grades are affected by the shift to Platts Dubai pricing?
The change applies to ADNOC’s onshore and offshore grades, specifically Murban, Das, Umm Lulu and Upper Zakum.
When will ADNOC’s official selling prices start reflecting the month of cargo loading?
From November 1, the new prompt‑month Platts Dubai benchmark will align OSPs with the actual loading month of each cargo.
Will the benchmark change affect ADNOC’s Murban futures contracts on ICE Futures Abu Dhabi?
ICE Futures Abu Dhabi will keep trading Murban crude futures with open interest, while contracts without interest will be suspended, preserving liquidity after the benchmark shift.
How will ADNOC inform customers about price differentials under the new benchmark?
ADNOC will announce differentials to Dubai quotes for each grade in the month before cargoes load, giving market participants advance notice of price adjustments.
Will the shift to Platts Dubai pricing materially impact ADNOC’s listed instruments like Murban GMTN or Sukuk?
The company expects the pricing change not to materially affect any of its listed instruments, including Murban GMTN or Sukuk programmes.
