ADNOC sets April Umm Lulu crude price at parity with Murban

Abu Dhabi National Oil Company (Adnoc) has set the April official selling price (OSP) for Umm Lulu crude at parity with Murban, aligning the blend's pricing with the UAE's flagship benchmark for the first time. This decision reflects Murban's growing role as a transparent, market-driven pricing reference, following reforms that tied Adnoc's crude pricing to ICE Murban futures contracts. The move comes as Adnoc increases Murban supply to meet rising Asian demand, with additional barrels already entering the spot market ahead of the OPEC+ meeting.

Murban's OSP is now determined by the monthly average of ICE Murban futures prices for the M-2 month, replacing prior differentials to Platts Dubai assessments. Umm Lulu, along with Das and Upper Zakum, is priced as a differential to Murban, enabling a unified pricing framework for Adnoc's exports. The parity adjustment underscores Murban's strengthening liquidity and its integration into global trading, supported by Adnoc's removal of destination and resale restrictions on its crude.

The shift aligns with broader efforts to enhance market transparency, as Murban exports—averaging 1.1 million barrels per day in recent years—are projected to rise with Adnoc's planned production capacity expansion to 2.5 million barrels per day by 2030. Meanwhile, Murban's relative performance has softened against Brent and Dubai benchmarks due to increased supply, though Brent prices remain firm near $72.61 per barrel. Analysts suggest the move could influence OPEC+ dynamics, as Middle Eastern producers adjust output strategies amid geopolitical uncertainties and evolving demand patterns.