The United Arab Emirates plans to adjust its crude oil pricing benchmark, anchoring the official selling prices of its three major oil types to the Dubai spread.
- According to informed sources, Abu Dhabi National Oil Company is proposing a new pricing method for crude oil sold to long-term clients, aiming to align its pricing mechanism with broader regional trading practices.
- The company's crude oil marketing team has communicated the related adjustments with refiners and traders, visiting Singapore and Japan to explain the details of the plan.
- Under the new plan, the official monthly selling price for the Upper Zakum, Das, and Umm Lulu crude grades produced in the Persian Gulf region will be set based on the premium or discount to the Dubai benchmark price, and will apply to cargoes loaded two months in advance.
- Currently, the official selling prices of these three crude grades are determined based on the price difference with Murban crude oil futures, while there is no proposed adjustment to the pricing mechanism for Abu Dhabi's main grade Murban crude.
- The informed sources said that the evaluation or implementation timetable for this plan has not yet been announced, and whether the transition to the new pricing mechanism can be made smoothly still depends on feedback from market participants and confirmation through further negotiations.
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