Intercontinental Exchange Announces Three Companies Agree to Explore Pricing US Crude Exports to Asia Using ICE Murban Futures
Intercontinental Exchange (ICE) has signed MOUs with Occidental Energy Marketing, Chevron, and Trafigura to explore pricing US crude exports to Asia based on the ICE Murban Futures contract. This contract, set for launch on March 29, 2021, aims to enhance oil market transparency. Fred Forthuber of Occidental noted the importance of establishing a new price benchmark for light sweet crude oil. The futures contract is physically delivered in Fujairah, UAE, and will be complemented by cash settled derivatives, offering capital efficiencies for traders.
- Signing of MOUs with major energy companies enhances collaboration and market positioning.
- Launch of ICE Murban Futures expected to improve pricing transparency for US crude exports.
- Physically delivered contract at Fujairah enables direct access to the UAE market.
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ABU DHABI, United Arab Emirates--(BUSINESS WIRE)--Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announces that ICE Futures Abu Dhabi (IFAD) and the Abu Dhabi National Oil Company (ADNOC) have signed Memorandum of Understandings (MOUs) with Occidental Energy Marketing, Inc., a subsidiary of Occidental; Chevron U.S.A. Inc.; and Trafigura, under which each company has agreed to explore potential opportunities to price US crude exports to Asia off the ICE Murban Futures contract.
“As one of the largest exporters of US crude to Asia, we are pleased to explore opportunities to utilize the new price benchmark for light sweet crude oil that Murban Futures will provide,” said Fred Forthuber, President, Oxy Energy Services. “Murban moving to forward looking pricing, as a futures contract, is another great step in the evolution of the oil market.”
“The Murban Futures Contract is a positive development in enhancing transparency for oil markets and very relevant to us as an active participant in crude oil trading in the Arabian Gulf and as the largest exporter of US crude. We look forward to playing an active part in the new benchmark,” said Daniel Yuen, Head of Crude Asia for Trafigura.
ICE plans to launch IFAD and trading in Murban futures contracts on March 29, 2021, subject to the completion of regulatory approvals. ICE Murban Crude Oil Futures will be a physically delivered contract with delivery at Fujairah in the United Arab Emirates (UAE) on a free on board (FOB) basis. ICE Murban Futures will be complemented with a range of cash settled derivatives. These include outright, differential and crack differentials against Brent, WTI, Gasoil and Naphtha among others, as well as inter-commodity spreads, which will launch alongside Murban futures.
In November 2019, ICE announced its plans to launch IFAD, with the Abu Dhabi National Oil Company and nine of the world’s largest energy traders partnering with ICE on the launch.
Contracts traded at IFAD will be cleared at ICE Clear Europe, a leading energy clearing house, and will clear alongside ICE’s leading global energy futures platform covering oil, natural gas and the environmental complex, allowing customers to benefit from associated margin offsets and delivering meaningful capital efficiencies.
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company and provider of marketplace infrastructure, data services and technology solutions to a broad range of customers including financial institutions, corporations and government entities. We operate regulated marketplaces, including the New York Stock Exchange, for the listing, trading and clearing of a broad array of derivatives contracts and financial securities across major asset classes. Our comprehensive data services offering supports the trading, investment, risk management and connectivity needs of customers around the world and across asset classes. As a leading technology provider for the U.S. residential mortgage industry, ICE Mortgage Technology provides the technology and infrastructure to transform and digitize U.S. residential mortgages, from application and loan origination through to final settlement.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located at http://www.intercontinentalexchange.com/terms-of-use. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 6, 2020.
About ADNOC
ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification. To find out more, visit: https://www.adnoc.ae
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Source: Intercontinental Exchange
