Raw "Murban" Consolidates its global position and competes in Asian markets
Abu Dhabi, 5 December / WAM / “Murban” crude oil constitutes a global benchmark, with increasing demand for it in light of the ongoing shifts in oil supplies in the Middle East, in addition to the narrowing of the price difference between it and West Texas Intermediate “WTI” crude oil, according to the “Oil Price” website, an American website specializing in energy affairs.
Murban crude is a type of light, sweet oil produced by ADNOC from fields in Abu Dhabi. It is characterized by a low sulfur content of 0.78% and a density of 39.9 degrees according to the American Petroleum Institute (API) standard.
“Murban” has consolidated its position as one of the most important and widely traded oil crudes within the basket of crude oils of the Platts Dubai benchmark index.
In 2021, Abu Dhabi established the Abu Dhabi Intercontinental Futures Exchange, which are the main contracts for the actual delivery of Murban crude. These contracts witnessed a major boom in 2024, recording record trading volumes of 1.5 billion barrels in the second quarter of 2024, more than double the trading at the beginning of the year. June also recorded new record levels, with an average daily trading of 31 million barrels, and one day in that month witnessed… A record trading of 57,300 contracts, equivalent to 57.3 million barrels, confirms that “Murban” has become a global benchmark with a solid status.
With the increased availability of “Murban” crude and the growth of its trading volumes on the Abu Dhabi Intercontinental Futures Exchange, it has become more than just a regional crude, as it is gradually approaching West Texas Intermediate crude with a narrowing of the price difference between them, which puts them in direct competition within the Asian refining centers that were previously dependent on American oil when economic conditions allow it.
This transformation confirms Murban’s acquisition of liquidity and transparency that make it an effective global benchmark, at a time when the arrival of WTI crude oil to Asia is affected by factors such as shipping costs, arbitrage cycles, and supply patterns from the US Gulf Coast.
It is noteworthy that the narrowing of the price difference between “Murban” and West Texas Intermediate crude oil came due to the increase in demand for Middle Eastern crude oils, especially “Murban”, in addition to ADNOC’s transfer of part of the production to its local refinery, which motivated Asian buyers to search for options other than West Texas Intermediate crude oil.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
