ADNCO Evaluates New Pricing Mechanism After Leaving OPEC

Bloomberg reported that ADNOC is discussing a proposal to index monthly official selling prices for Upper Zakum, Das and Umm Lulu crude oils to Dubai crude instead of Murban futures. The change is seen as aligning with the UAE's plans to boost production and exports after its exit from OPEC.

Scraper SystemJune 30, 2026, 09:58 PM

ADNCO Evaluates New Pricing Mechanism After Leaving OPEC

Bloomberg reported that Abu Dhabi National Oil Company (ADNOC) is considering changing the pricing mechanism for some offshore crude oils sold under long-term contracts. This step could bring the prices of Abu Dhabi crude oils closer to regional trading benchmarks in the Gulf and Asia and support the United Arab Emirates' (UAE) plans to boost oil production and exports after its exit from the OPEC and OPEC+ group last May.

Sources familiar with the matter told the agency that ADNOC's crude oil marketing team has discussed the proposal with refineries and oil trading companies, most recently traveling to Singapore to present the proposed changes and then moving to Japan for similar talks with Asian customers.

Shift to Dubai crude pricing

According to the proposal, monthly official selling prices for Upper Zakum, Das and Umm Lulu crude oils would be set as a price differential against the Dubai crude benchmark for cargoes loading two months later. The current system indexes these crudes to Murban crude futures contracts traded on the ICE Futures platform in Abu Dhabi.

In its report, Bloomberg said the proposal does not include a change in the pricing mechanism for Murban, Abu Dhabi's main crude. Sources said ADNOC has not set a timeline for review or implementation, and the company declined to comment.

New era after OPEC exit

The review of the pricing mechanism came after the UAE announced on April 28 that it would withdraw from the OPEC and OPEC+ alliance as of May 1, 2026. The UAE's official news agency reported that the decision reflects a long-term economic and strategic vision, includes the transformation of the energy portfolio and acceleration of investment in local energy production, as well as increasing the UAE's ability to respond to market needs.

According to data from the U.S. Energy Information Administration, the UAE had the third-largest crude oil production capacity within OPEC in 2025, after Saudi Arabia and Iraq. Its average production was 3.4 million barrels per day, while actual production capacity was estimated at 4.2 million barrels per day.

If the UAE exits OPEC, the organization's share of global crude oil production is estimated to drop from 35% in 2025 to 31%.

Ambitious production capacity target

As part of its responsible growth strategy, ADNOC aims to increase its low-carbon hydrocarbon production capacity to 5 million barrels per day by 2027. The company says the carbon intensity of its main crude Murban is less than half the global industry average.

According to International Energy Agency (IEA) data cited by Reuters, the UAE is expected to become one of the driving forces of non-group supply growth after leaving OPEC+. The IEA forecasts that the UAE's total oil production will exceed 5 million barrels per day in 2027, reaching 5.2 million barrels per day, with an annual increase of 730,000 barrels.

The same data shows that the UAE's oil exports rose by 260,000 barrels per day in May compared to the previous month, reaching 3.1 million barrels per day, while crude oil production increased to 2.8 million barrels per day, remaining 835,000 barrels per day below pre-war levels.

ADNCO Evaluates New Pricing Mechanism After Leaving OPEC