Abu Dhabi’s state-owned energy giant, ADNOC, has completed its first transactions using the S&P Global Platts pricing mechanism for Dubai crude, an uncommon move for a Middle Eastern producer.
Dubai crude serves as a crucial benchmark for oil pricing in the Middle East, determining the rates at which most regional exporters sell to Asia. According to trading sources who spoke to Reuters, it is unusual for a Middle Eastern producer to engage directly in transactions that influence the pricing of crude from its own region.
ADNOC reportedly purchased crude from BP and Trafigura at a rate of $70.25 per barrel, traders disclosed.
Middle Eastern exporters rely on the Oman/Dubai average to price their crude shipments to Asia. The price fluctuations of Dubai and Oman crude play a significant role in Saudi Aramco’s pricing strategy, as the world’s largest crude exporter determines the rates for its oil sales to Asia based on these movements.
Saudi Arabia usually announces its monthly crude pricing around the fifth of each month but does not comment on price shifts. Its pricing decisions influence the rates set by other major Middle Eastern oil producers for their Asian exports.
The price of Saudi Arabia’s flagship crude, Arab Light, was raised last month to its highest level in over two years against the Oman and Dubai benchmarks. This increase came as premiums for Middle Eastern crude surged at the start of 2025, partly due to U.S. sanctions on Russian crude trade.
According to a Reuters poll last week, Asian refiners anticipated a slight reduction in the price of Arab Light shipments for Asia in April, following minor declines in Middle Eastern benchmark prices. Refiners expect Arab Light to be priced between $3.25 and $3.70 per barrel above the Oman/Dubai average, down from the $3.90 premium set for March.
