Abu Dhabi’s Murban crude oil trading is ‘positive’ for the market: IEF chief economist

  • Date: 30-Mar-2021
  • Source: Arabian Business
  • Sector:Oil & Gas
  • Country:UAE
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Abu Dhabi’s Murban crude oil trading is ‘positive’ for the market: IEF chief economist

The move by Abu Dhabi this week to start trading futures contracts for Murban crude has been described as a “positive move for the market”, which will give the oil producing giant an edge over its competitors, according to Leila Benali, chief economist at the International Energy Forum (IEF).

The historic launch of Murban trading on the new ICE Futures Abu Dhabi (IFAD) commodities exchange signalled the first time an OPEC member from the Arabian Gulf has allowed its oil to be freely sold and shipped anywhere in the world.

Benali told Arabian Business: “I think all in all it's a positive move for the market. Anything removing destination restrictions, anything improving the liquidity of the market is definitely welcome.”

Trading on the contract's first day has "been a real success so far," said Stuart Williams, president of ICE Futures Europe

According to a report from Bloomberg, on its first trading day, volume in Murban for June, the first month for which cargoes will be available, and for July both exceeded 2,200 lots, with more than 1,100 August contracts changing hands and several hundred for September. Each lot represents 1,000 barrels. The contract for June delivery traded at $63.78 a barrel as of 2:50