Abu Dhabi landmarks light up to celebrate Murban crude futures launch

Trading in futures contracts for Murban crude, Abu Dhabi's flagship oil grade began on Monday. Abu Dhabi Media Office

Murban, a light, sweet type of crude that is popular in Asian markets, will join Brent and West Texas Intermediate as a global benchmark. Abu Dhabi Media Office

The Emirates Palace is lit up to celebrate the launch of an oil benchmark for Abu Dhabi. Abu Dhabi Media Office

Murban is Abu Dhabi's flagship crude grade, which flows at approximately 1.7 million bpd and accounts for half of the UAE's overall output. Abu Dhabi Media Office

The UAE, which accounts for 4.2 per cent of global crude output. Abu Dhabi Media Office

Adnoc, which produces much of the oil on behalf of the UAE, plans to raise its overall capacity to 5 million bpd by 2030.. Abu Dhabi Media Office

The UAE has the capacity to produce 2 million bpd of Murban. Around 1 million bpd of Murban production is available for export. Abu Dhabi Media Office

Intercontinental Exchange, which hosts Murban is also responsible for the Brent benchmark and is the parent company of the New York Stock Exchange. Abu Dhabi Media Office

Murban's international role is supported by Adnoc's recent removal of destination clauses in its trade. Abu Dhabi Media Office

Murban's contract for future delivery will be traded 22 hours a day, five days a week. Abu Dhabi Media Office

Landmarks across Abu Dhabi emirate lit up in blue on Monday to celebrate the launch of Murban crude futures, which started trading yesterday.

Murban, which is classified as a light, sweet type of crude, is very lucrative and highly favoured in Asian markets for its properties.

The UAE, which accounts for 4.2 per cent of global oil supply, fills a gap in the pricing and trade of crude with the launch of Murban crude futures.

The Middle East region produces the bulk of global oil, however, much of the trade in the commodity is priced on the basis of Brent.

The international benchmark, under which two-thirds of all oil is traded, is priced on the basis of production from the North Sea, which is in decline.

Murban fills a void in oil trading and pricing in the Middle East, which is the biggest supplier of crude to global energy markets.

The trading of a new benchmark based on a single, high-quality Middle East crude will offer more "transparency" to global oil markets, particularly to customers in Asia, chief executives of international energy companies said on Monday.

The crude grade's international role is supported by Abu Dhabi National Oil Company's recent removal of destination clauses in its trade.

Adnoc's other crude grades, Upper Zakum, Das and Umm Lulu, will be priced at a differential to Murban.