South Korea’s leading oil refiner GS Caltex Corp. alongwith energy-markets giant Intercontinental Exchange (ICE) and energy majors has launched the ICE Futures Abu Dhabi (IFAD) exchange in Abu Dhabi to trade state-run Abu Dhabi National Oil Company (ADNOC)’s Murban crude oil futures.
The virtual launching event held Monday (local time) in Abu Dhabi was attended by the heads of founding members including GS Caltex, BP, Shell, Vitol, PetroChina, Inpex, Eneos and PTT.
“With the launch of the IFAD exchange, buyers now have a new place for fair and transparent trade of Murban crude oil, which would become a global benchmark for oil prices,” said Hur Sae-hong, CEO of GS Caltex.
ICE Murban Crude Oil Futures opened for trading Monday along with 18 Murban-related cash settled derivatives and inter-commodity spreads. Trading is available for 22 hours a day from 1 a.m. to 11 p.m. based on the U.K. GMT.
The contract is expected to help traders to hedge risks through a new pricing system as they can know the price before oil is loaded, instead of waiting for two months from purchases like earlier. The first expiry month of the contract is set for June.
Murban crude is considered light sweet crude used by more than 60 oil refiners across the globe.
GS Caltex last year imported total 260 million barrels of crude oil, of which 13 percent or 34 million barrels were Murban crude.
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