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2026-07-13 17:38:13
[Abu Dhabi Introduces New Pricing for Off-Strait Delivery, Premium Structure Reveals Regional Supply and Demand Pattern] ⑴ Abu Dhabi National Oil Company's latest price document shows that the company will adopt a new pricing mechanism linked to the Dubai benchmark price for seaborne crude oil that can be delivered outside the Strait of Hormuz. ⑵ For transactions delivered in August and completed via ship-to-ship transshipment in Fujairah, Upper Zakum and Das crude oils will have a premium of US$0.80 per barrel over the Dubai benchmark, while Umm Lulu crude oil will have a premium of US$1 per barrel. ⑶ The new pricing mechanism aims to provide buyers with options to avoid potential passage risks in the Strait of Hormuz, while the premium setting reflects the additional logistical costs and geopolitical risk premium under the Fujairah transshipment model. ⑷ All of the above crude oils are produced in oil fields within the Persian Gulf, and sales channels at existing loading locations will be retained. This move provides market participants with more flexible delivery routes and pricing references. (5) The difference in premium structure indicates that Umm Lulu crude oil has stronger premium support in terms of quality or logistical suitability, while the overall price range also reflects the tight demand for Middle Eastern light crude oil in the Asia-Pacific market. (6) The focus going forward is on whether this pricing model can attract more end-users to adjust their delivery arrangements, and whether the price spread between the Dubai benchmark and Brent and WTI will fluctuate further due to logistical substitution effects.
