China’s Shanghai International Energy Exchange (INE) will add Abu Dhabi’s Murban crude as a deliverable into its crude futures contract from June next year.
Murban is the first new grade to be added to the contract since its launch in 2018. The exchange currently has Dubai, Upper Zakum, Oman, Qatar Marine, Basrah Light, Basrah Heavy and Masila as deliverable grades in the contract.
The exchange has set specifications for Murban crude at minimum 35 degrees API and maximum sulphur content of 1.5 percent. The premium for the grade has been set at Yuan 5/b, or 76 cents/b.
Sources at INE said the exchange will keep monitoring China’s import trends for crude grades to adopt necessary adjustments on the deliverable grades in a bid to meet investors’ needs for hedging.
INE said: “Murban’s volume has risen notably in China, moreover, it is not a destination-fixed crude grade and free for trading.”
For more information visit www.ine.cn