Oil & Gas

The demand for UAE Murban crude is rising in Asian markets due to its distinct chemical characteristics being light, low in sulfur, and having a carbon density less than half the global average. Vietnam's Binh Son Refining and Petrochemical Company recently purchased its first shipment of UAE crude, estimated at 300,000 barrels, to diversify the supply sources for its Dong Quat refinery.

The UAE Murban crude shipment is expected to arrive at the Vietnamese company in December 2024, according to data reviewed by the Washington-based Specialty Energy Platform. Murban crude is one of the most sought-after globally, with an API gravity of 40 and a sulfur content of 0.778, as per the American Petroleum Institute standards.

Binh Son has stated that sourcing crude from multiple suppliers to blend with Bach crude has created opportunities to procure oil at lower prices than domestic options. Since starting commercial operations in 2009, the Dong Quat refinery has processed around 100 million metric tons (710 million barrels) of crude oil. As of September, the refinery processes 32 different crude oil types, including 9 domestic and 23 imported varieties.

Murban crude, discovered in the Bab Murban oil field in 1958, has maintained stable production levels and is part of a range of global pricing mechanisms on the Intercontinental Exchange. In 2019, Abu Dhabi’s Supreme Petroleum Council shifted Murban's sales strategy to market-based future contracts. In August 2024, the official selling price of Murban crude was $82.52 per barrel, following prices of $83.93 in July and $89.14 in June. Trading of Murban crude on the Intercontinental Exchange hit a record volume in the second quarter of 2024, with 1.5 million contracts traded, equivalent to 1.5 billion barrels.