Suhail al-Mazrouei, the Minister of Energy of United Arab Emirates was heard stating that he sees no serious disagreement or argument between the UAE’s conformity with the output cuts of OPEC and he stated that he has planned to list the crude oil of Murban by the Abu Dhabi National Oil Co (ADNOC). Next year a new exchange will be initiated and organized in the United Arab Emirates by the government, called the Intercontinental Exchange i.e. Inc ICE.N. This exchange will be responsible for the listing of ADNOC’s flagship Murban crude grade.
The Organization of the Petroleum Exporting Countries has discussed, negotiated and then accepted the cuts. The Minister of Energy, Mazrouei, says the UAE is still devoted to the agreed cuts as well as the allies led by Russia. Since January the accord to cut the output 1.2 million barrels per day (BPD) has been put into action by these countries. This agreement is to last until March 2020. By following this course of action the countries are attempting to boost the oil prices.
At an energy conference held in the UAE capital, Abu Dhabi, Mazrouei openly stated it to the reporters in the press that he doesn’t think a conflict exists in relating Murban with the fact that his country is going to act in accordance with what the OPEC has agreed to, he says this does not troubled or worried by it. Oil majors BP BP.L, Total TOTF.PA, Inpex 1605.T, Vitol VITOLV.UL, Shell RDSa.AS, Petrochina 601857.SS, Korea’s GS Caltex, Japan’s JXTG 5020.T and Thailand’s PTT PTT.BK have agreed to become partners in the new exchange.
The CEO of ADNOC named Sultan al-Jaber has stated that the future contract of Murban will allow the buyers to be surrounded by risks and this will cause more value to be caught from the oil output of ADNOC which will take the place of retroactive pricing.