ADNOC Cuts August Murban Price and Offers Fujairah Loading Option Amid Hormuz Risks

Abu Dhabi | EcoPulse24

Abu Dhabi National Oil Company (ADNOC) has lowered the official selling price (OSP) of its flagship Murban crude for August while introducing an alternative loading option through Fujairah, a move that strengthens export flexibility as energy markets continue to monitor security risks around the Strait of Hormuz.

ADNOC set the August Murban OSP at USD 80.01 per barrel, down sharply from USD 101.48 per barrel for July. The adjustment reflects the decline in regional benchmark crude prices during the pricing period after the temporary easing of geopolitical tensions between the United States and Iran reduced immediate concerns over supply disruptions through the Strait of Hormuz.

Since then, crude prices have recovered following renewed military tensions between Washington and Tehran, pushing Brent crude back above USD 85 per barrel and reviving concerns over global energy supplies.

Alongside the pricing revision, ADNOC announced that long-term contract customers will be offered an alternative delivery mechanism for offshore crude cargoes. Under the new arrangement, customers may choose either traditional Free on Board (FOB) loading or ship-to-ship (STS) transfers at Fujairah, one of the region's most strategically important energy hubs outside the Strait of Hormuz.

Cargoes delivered under the Fujairah option will be priced against the August Dubai benchmark, with premiums of USD 1.00 per barrel for Umm Lulu crude and USD 0.80 per barrel for Das and Upper Zakum grades.

The new delivery framework applies to ADNOC's long-term customers and follows strong spot-market activity. Between June and August, ADNOC sold more than 70 million barrels of Upper Zakum, Das and Umm Lulu crude, most of which were marketed through ship-to-ship transfers from Fujairah.

The company has also continued increasing crude production, with UAE output exceeding 3.8 million barrels per day in June, among the highest production levels in the country's history.

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EcoPulse24 Analysis

While the reduction in Murban's official selling price reflects formula-based adjustments linked to regional benchmark movements, the more strategically important announcement is ADNOC's expansion of delivery flexibility through Fujairah.

The decision highlights how Gulf energy exporters are increasingly adapting not only their pricing strategies but also their logistics networks in response to geopolitical uncertainty. Fujairah, located outside the Strait of Hormuz, has become one of the region's most critical energy logistics hubs, offering exporters and buyers an additional layer of operational resilience during periods of heightened maritime risk.

The move also reflects a broader structural shift in the Gulf oil market. Producers are no longer competing solely on crude quality and pricing. Supply-chain reliability, export flexibility and uninterrupted delivery capability have become equally important competitive advantages as buyers seek greater certainty in an increasingly volatile geopolitical environment.

With tensions around the Strait of Hormuz continuing to influence oil markets, ADNOC's latest decision demonstrates that logistics resilience is becoming an integral component of regional energy strategy rather than simply an operational consideration.