Bloomberg has announced a new Bloomberg Commodity Murban Crude Oil Index, aimed at tracking the performance of rolling futures on Murban Crude Oil. The new offering is a subindex of the flagship Bloomberg Commodity Index (BCOM) and reflects the global recognition and status that Murban crude and the Murban futures contract has quickly established as it trades alongside global benchmarks such as Brent and WTI.
Launched in March 2021, the Murban crude oil future is a physically delivered contract at Fujairah that trades on the ICE Future Abu Dhabi (IFAD) exchange.
Since its launch, the Murban futures contract has significantly increased the number of both physical and financial buyers of the UAE’s Murban crude. More than 150 participants have traded on IFAD since its launch, with participants from across the United States, Europe, Asia, and the Middle East, demonstrating the global audience for trading Murban crude oil.
Over 5.5 million contracts have been traded since the launch of IFAD, the equivalent of 5.5 billion barrels of Murban crude oil. And around 244 million barrels of Murban crude oil have been delivered through IFAD, showing how customers have confidence in the IFAD delivery process.
Sourced from Adnoc’s onshore concessions, Murban crude represents more than half of the UAE’s total oil production.
While the primary route for exposure to global crude oil markets has historically been via WTI and Brent Crude Oil futures, Bloomberg’s index research team notes that the geography of demand, crude grade and transportation dynamics of Murban crude oil futures not only offers investors with WTI and Brent Crude Oil exposure diversification benefits, but also the ability to better target geopolitical risk and regional growth dynamics.