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Platts to change benchmark Dubai oil prices in 2026

S&P Global Platts announced on Tuesday that it would be changing the pricing mechanism of United Arab Emirates Murban crude oil in the Dubai benchmark oil from 2026, to better reflect the market dynamics.

In a document posted on its website, the price-reporting organization said that the Abu Dhabi grade should be priced at a level above or below Dubai and other grades of medium-sour in the basket.

Currently, a premium has been applied to the light-sour Murban in order to reflect its superior quality compared to other medium-sour grade - Dubai Oman Upper Zakum, and al-Shaheen - which can be delivered as part of the Platts market on Close process, which sets the benchmark price for Dubai.

The price of Murban crude has recently fallen due to increased supplies. This, in turn, has affected the Dubai benchmark, which prices Middle East oil for Asia at more than 14,000,000 barrels of oil per day.

Platts said that it also planned to change its calculation for pricing the quality difference between Murban and other grades in the Dubai Basket.

Platts stated that the changes would take effect on January 2, 2026 pending feedback from the industry.

Platts stated that the role of Murban has changed in recent years due to changing market dynamics.

These include OPEC+ cuts in production that have restricted the availability of medium sour crudes and increased supplies at the same of lighter, sweeter grades, which has more often led to a narrowing of sweet/sour value.

Murban is responsible for two thirds of Abu Dhabi National Oil Co.'s production.

Platts reported that upgrades at regional and international refineries increased the demand for heavier crudes with more sourness.

The report added that "these market shifts" have increased the frequency with which Murban is declared as Dubai convergences, and Murban played a larger role in defining benchmarks.

Platts' proposed methodology would calculate the daily Murban adjustment based upon the difference in net prices between Platts' assessments for Murban versus Oman, for cargoes that are loading two months before the publication date.

A Singapore-based trader stated that this was great news for Dubai, and added that Murban would no longer be able to limit gains for the Middle East benchmark. (Reporting and Editing by Florence Tan and Siyi Liu)

(source: Reuters)