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Adnoc Rethinks Crude Pricing for Global Market
30 Jun
Summary
- Adnoc proposes a new crude pricing method to align with regional norms.
- New method will set official selling prices against the Dubai benchmark.
- This change could boost Adnoc's crude production and shipments.
Abu Dhabi National Oil Co. (Adnoc) is reportedly proposing a new methodology for setting the official selling prices (OSPs) of its crude oil to term customers. This initiative aims to bring its pricing structure more in line with prevailing regional trading norms.
The proposed change would link the monthly OSPs for Upper Zakum, Das, and Umm Lulu crude grades to a differential against the Dubai benchmark, specifically for cargoes loading two months ahead. Currently, these OSPs are determined relative to Murban futures.
This adjustment, if implemented, is expected to facilitate easier comparison of these Adnoc crude varieties with other regional crudes like Oman and Al-Shaheen, which are typically priced against the Dubai benchmark in the spot market.
Industry sources indicate that Adnoc's crude-marketing team has engaged with refiners and traders, including recent discussions in Singapore and upcoming meetings in Japan, to outline these proposals. While no specific timeline for the review or implementation has been provided, the change could bolster Adnoc's strategy to increase its crude output and exports.
