Abu Dhabi National Oil Company (Adnoc) is altering its crude oil pricing strategy, moving from a system that sets prices months in advance to one that more closely mirrors current market conditions. Effective November 1, Adnoc will base its official selling prices on the prompt-month Platts Dubai benchmark. This benchmark reflects the value of Middle Eastern crude in the physical spot market.

Adnoc will then apply a differential, either a premium or discount, which will be announced before the delivery month. This marks a significant departure from the current method, which uses the Murban futures contract traded on ICE Futures Abu Dhabi, with prices determined two months prior to loading. The shift aims to provide buyers with pricing that better reflects market volatility.

This change is expected to offer greater transparency and responsiveness to market fluctuations for Adnoc's global customers. The move away from a longer-term pricing mechanism to a more immediate benchmark like Platts Dubai is a strategic adjustment in response to the dynamic nature of the global oil market, particularly during periods of heightened price volatility. The company anticipates this will lead to more competitive and accurate pricing.