Intercontinental Exchange (ICE), a leading operator of exchanges, and Abu Dhabi National Oil Company (Adnoc) have partnered with nine global energy traders are on the launch of ICE Futures Abu Dhabi, a new exchange in Abu Dhabi Global Market (ADGM) that will host the world's first Murban crude oil futures contracts.
The nine companies supporting the launch of ICE Futures Abu Dhabi are BP, GS Caltex, INPEX, JXTG, PetroChina, PTT, Shell, TOTSA (Total) and Vitol.
The news follows the announcement from ICE earlier today regarding the planned launch of ICE Futures Abu Dhabi and ICE Murban futures in the first half of 2020, subject to relevant regulatory approvals.
"Partnering with Adnoc and nine of the world's largest physical traders of Murban crude to launch ICE Futures Abu Dhabi is a significant endorsement and strong signal of the potential for Murban to become a new global crude benchmark," said Jeffrey C Sprecher, chairman and chief executive officer, Intercontinental Exchange.
"Intercontinental Exchange is one of the world's most recognized and leading operators of global exchanges and clearing houses and Adnoc is pleased to be a part of this significant new venture which will strengthen Abu Dhabi's position as a global energy hub," said Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO.
"We are particularly pleased that nine leading global energy companies, all of which are our partners and customers, have decided to join us in this initiative. Having a new, independent exchange in Abu Dhabi will not only benefit the UAE, but also physical and financial oil traders around the world."
ICE Murban Futures will be a physically delivered contract with delivery at Fujairah in the United Arab Emirates on a free on board (FOB) basis. Murban Crude is a light sweet crude produced by Adnoc. Adnoc produces roughly three million barrels of oil per day, of which approximately 1.7 million barrels per day is Murban crude. – TradeArabia News Service