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Update: Market Chatter: Oil Traders to Adjust IFAD Exchange Positions After Adnoc Benchmark Change

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(Updates with comments from Adnoc and IFAD in fourth paragraph)

Oil traders will likely close out their Murban crude futures contracts on the ICE Futures Abu Dhabi exchange following a shift in Abu Dhabi National Oil's pricing mechanism, brought about by market changes from recent Strait of Hormuz supply disruption, Reuters reported Tuesday, citing sources.

Adnoc last week said it will use prompt-month Platts Dubai benchmark instead of Murban futures contracts in determining the official selling prices for its crude grades, including Murban, Das, Umm Lulu, and Upper Zakum, beginning Nov. 1. The company does not expect "material" impact on its listed instruments and will deliver all committed crude volumes.

Following the announcement, IFAD said it will continue trading for Murban crude futures contract months that have open interest, but has already suspended those without open interest as of Friday.

An Adnoc spokesperson toldin a statement that "the updated methodology remains transparent, rules-based and built on publicly available market references," while IFAD said the shift to a more liquid benchmark could manage heightened geopolitical risks.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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