Abu Dhabi Wants to Change How a Fifth of Global Oil Is Priced - Bloomberg:
The Middle East produces a fifth of the world’s oil, but the region’s never had a benchmark price that competes with London’s Brent or New York’s WTI. That could be about to change.
One of the Persian Gulf’s biggest producers, Abu Dhabi, wants to create a benchmark for Middle Eastern crude that competes for customers in Asia with exports from America’s shale boom. If the new contract for Abu Dhabi’s Murban crude takes off, it could herald a fundamental shift in the way Gulf producers sell oil.
“I think this has legs,” said Mike Muller, Vitol Group’s head of crude trading for Asia. Murban is “a single grade that serves as a good reference, quality-wise, for the big new flow that’s coming into Asia,” he said this month at a conference in the Middle Eastern oil-trading hub of Fujairah.
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