ICE sets date for launch of world’s first futures contracts based on Murban crude oil
Intercontinental Exchange Inc (NYSE:ICE) today provided an update on its plans to launch the world’s first futures contracts based on Murban crude oil.
The exchange operator aims to launch ICE Futures Abu Dhabi (IFAD) and Murban crude futures contracts on March 29, 2021, subject to the completion of regulatory approvals.
In November 2019, ICE announced its plans to launch IFAD, with the Abu Dhabi National Oil Company (ADNOC) – the producer of Murban crude – and nine of the world’s largest energy traders partnering with ICE on the launch.
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 are planned to launch alongside Murban futures.
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.
The contract will provide users with an effective hedging instrument for Arab Gulf crude oil and other grades trading into the Asia Pacific Region. The underlying physical market is for Murban crude oil available without the local Abu Dhabi resale restriction.
The full list of contracts includes:
- Crude Outright – Murban Singapore Marker 1st Line Future Contract;
- Crude Outright – Murban Singapore Marker 1st Line Balmo Future Contract;
- Crude Outright – Murban 1st Line Future Contract;
- Crude Outright – Murban 1st Line Balmo Future Contract;
- Crude Diff – Murban Singapore Marker 1st Line vs Brent Singapore Marker 1st Line Future Contract;
- Crude Diff – Murban Singapore Marker 1st Line vs Brent Singapore Marker 1st Line Balmo Future Contract;
- Crude Diff – Murban 1st Line vs Brent 1st Line Future Contract;
- Crude Diff – Murban 1st Line vs Brent 1st Line Balmo Future Contract;
- Crude Diff – Murban Singapore Marker 1st Line vs Brent 1st Line Future Contract;
- Crude Diff – Murban Singapore Marker 1st Line vs Brent 1st Line Balmo Future Contract;
- Crude Diff – Murban 1st Line vs WTI 1st Line Future Contract;
- Crude Diff – Murban 1st Line vs WTI 1st Line Balmo Future Contract;
- Crude Diff – Murban 1st Line vs Dated Brent (Platts) Future Contract;
- Crude Diff – Murban 1st Line vs Dated Brent (Platts) Balmo Future Contract;
- Gasoil Crack – Singapore Gasoil (Platts) vs Murban 1st Line Future Contract;
- Fuel Oil Crack – Fuel Oil 380 CST Singapore (Platts) vs Murban 1st Line Future Contract;
- Gasoline Crack – Singapore Mogas 92 Unleaded (Platts) vs Murban 1st Line Future Contract;
- Naphtha Crack – Naphtha C+F Japan (Platts) vs Murban 1st Line Future Contract (in Bbls).
The Daily Settlement Price will be published at 19:30 London Prevailing Time every Trading Day with the exception of the Last Trading Day where no such prices for the expiring contract month will be published.
The Daily Settlement Price is the volume weighted average price of trades between 19:28 and 19:30 London Prevailing Time, or as determined by the Exchange, as detailed within the Trading Procedures of the IFAD Rulebook.
The final settlement price, as determined by the Exchange on the Last Trading Day of the expiring contract month, will be the Marker Price published at 16:30 Singapore Prevailing Time and shall be the basis for delivery.