UAE to revamp crude pricing amid sharp market fluctuations

Abu Dhabi National Oil, the UAE's state oil company, said it would change how it prices its crude oil grades, months after wild swings in the benchmark it has been using to underpin its sales.

From November 1, all Adnoc onshore and offshore crudes will price using a regional Dubai benchmark published by Platts, rather than the ICE Futures Abu Dhabi Murban contract that started in 2021. It also means pricing will be announced in the month prior to loading, rather than two months ahead. Bloomberg reported earlier this month that Adnoc had talked about making the switch for offshore grades, but Friday's statement goes further.

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Middle Eastern oil pricing has been a major pinch point during the Iran war. The intermittent disruption to crude flows through the Strait of Hormuz has meant that prices have been hugely volatile, while some traders amassed large positions in regional benchmarks, adding to the bigger price swings.

The move will bring the UAE more in line with other regional producers, like Saudi Arabia, and is significant for Asian oil refiners who usually dominate buying of the country's barrels.