Five years after launching the IFAD Murban Futures Contract to great fanfare, Adnoc is switching all crude oil pricing to a Platts Dubai-linked formula. The 31 July announcement effectively killed off IFAD Murban, the rationale for which was price discovery for Adnoc’s flagship crude. The same day, ICE announced that it was winding down the contract.
In doing so, Adnoc has dismantled an institution into which it had poured considerable capital – including bringing in BP, TotalEnergies, GS Caltex, Inpex, PetroChina, JXTG, PTT, Shell, and Vitol as founding partners (MEES, 15 November 2019). The Abu Dhabi state energy giant merely stated that the move followed “a regular commercial review.” ICE did not comment on the development, beyond its 31 July circular. (CONTINUED – 1798 WORDS)
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