Abu dhabi: Murban crude has evolved into a major global benchmark. Its pricing relationship with West Texas Intermediate Crude Oil (WTI) is narrowing, as Murban demand increases amid Middle Eastern supply shifts.
According to Emirates News Agency, Murban crude, which originates from Abu Dhabi and is produced by ADNOC, is a light sweet crude with a sulphur content of 0.78 percent and an American Petroleum Institute gravity of 39.9 degrees. Murban has become one of the most prominent and frequently delivered grades in the Platts Dubai crude oil benchmark basket.
In 2021, Abu Dhabi launched IFAD (ICE Futures Abu Dhabi) futures, its flagship contract for the physically delivered Murban crude oil. Trading in Murban futures gained momentum in 2024, setting records quarter after quarter. During the second quarter, volumes reached 1.5 billion barrels, more than double the pace seen at the start of the year. June saw fresh highs, with an average of 31 million barrels changing hands daily and a single-day peak of 57,300 contracts, or 57.3 million barrels. This surge indicates that Murban is transitioning from a niche Gulf crude to a global benchmark.
As Abu Dhabi increases Murban availability and IFAD trading volumes build depth, the grade is no longer confined to a regional role. Its pricing relationship with WTI has begun to narrow, pushing the two into more direct competition in Asian refining centers that once defaulted to US barrels when economics allowed.
The result is a shift where Murban is gaining the liquidity and transparency that make a benchmark useful. Meanwhile, WTI's reach into Asia is influenced by freight, arbitrage cycles, and Gulf Coast supply patterns. The narrowing pricing relationship between Murban and WTI is driven by rising demand for Middle Eastern crudes, specifically Murban, alongside ADNOC's domestic refinery diversions, encouraging Asian buyers to seek alternatives.