The new international exchange for Murban crude oil that will be based in Abu Dhabi is set to open significant possibilities for the UAE capital by evolving into a transparent, regulated regional center for crude, according to the chairman of New York Stock Exchange (NYSE).

Intercontinental Exchange, a major operator of global exchanges, earlier this week announced that it’ll launch ICE Futures Abu Dhabi (IFAD) that will host the world's first futures contracts based on Abu Dhabi National Oil Company's (ADNOC) flagship Murban crude oil. Read more here:

“Exchanges are iconic. Stock exchanges (in the US) are often wrapped with the American flag on the entire building. If you look at photos of the New York Stock Exchange, you’ll see that it is a symbol of capitalism for the United States in the same way that what we’re looking to do here is create a functioning symbol for Middle East crude that can roll its span,” said Jeffrey Sprecher, chairman of NYSE on Tuesday.

It is a major initiative that ADNOC and Abu Dhabi broadly are investing in,” Sprecher, who is also the founder and chief executive of Intercontinental Exchange, told ADIPEC forum.

Oil majors including BP, Total and Shell would be partners in the new exchange ICE Futures Abu Dhabi (IFAD) that is set to be launched in early 2020.

Sprecher also said it plans to use the Murban crude oil futures contract to expand to other crude grades and to get ‘deeper into Asia’.

“The goal is to start with Murban crude but to expand in a natural way,” he said.

“I see this growing into something much bigger and that is the aspiration… I think someday we’ll have the ‘Middle East flag’ wrapped around the building,” Sprecher added.

(Writing by Nada Al Rifai; Editing by Seban Scaria)

(nada.rifai@refinitiv.com)

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2019