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Intercontinental Updates Plans to Launch IFAD in Abu Dhabi
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Intercontinental Exchange, Inc. (ICE - Free Report) updated its plans to introduce new exchange ICE Futures Abu Dhabi (IFAD). This exchange will host the world’s first futures contracts based on Abu Dhabi National Oil Company’s (ADNOC) Murban crude oil. The plan was earlier declared in the fourth quarter of 2019. Pending regulatory approvals, IFAD and trading in Murban futures contracts, will be launched later in the first quarter of 2021.
To support the launch of ICE Futures Abu Dhabi, nine of the world’s largest energy traders have collaborated with ICE. The list includes BP, GS Caltex, INPEX, JXTG, PetroChina, PTT, Shell, TOTSA (Total) and Vitol.
The partnership with ADNOC and nine of the world’s largest physical traders of Murban crude to launch ICE Futures Abu Dhabi will provide a solid opportunity for Murban to become a new global crude benchmark.
Sourced from Abu Dhabi, Murban crude is recognized for its production volumes, reliable supply and consistent quality — producing approximately 1.7M barrels per day.
A new pricing mechanism for ADNOC’s Murban crude has been declared by Abu Dhabi’s Supreme Petroleum Council (SPC) on Nov 4, 2019. As a result, Murban pricing will be market-driven and forward pricing using Murban futures contract as its price marker.
The introduction of IFAD on the first quarter of 2021 will provide an opportunity to trade and hedge Murban in a regulated, transparent and accessible venue. The pricing and trading mechanism of Murban crude will change remarkably with the launch of IFAD and the recent decision of SPC. Additionally, Abu Dhabi's status has been boosted as a global energy hub.
ICE Murban futures will bring transparent pricing and a forward curve to participants, establishing a secondary market for the first time. Murban represents a new oil benchmark, with this light sweet crude well-positioned to serve a global market.
The contract will complement ICE’s global oil complex of more than 600 products covering 47 geographic locations. This provides participants with delivery at the point of consumption, capital efficiency, and inter-commodity spreads between ICE exchanges.
Intercontinental Exchange, the leading marketplace for global crude and refined oil, offers trading and clearing services across a range of global benchmark contracts, which include Brent, West Texas Intermediate, or WTI, Platts Dubai, Gasoil, Heating Oil and many additional grades and related spread contracts.
Therefore, this new launch will complement the Intercontinental Exchange’s Energy business, which is already performing strongly. In the first half of 2020, total energy volume increased 34% and revenues rose 30%. Total oil volume increased 33% due to increased risk management activity driven by shifting supply/demand dynamics related to various geopolitical events and the COVID-19 pandemic.
Intercontinental Exchange’s third-quarter heating oil average daily volume (ADV) increased 184% year over year, while RBOB gasoline increased 261% year over year.
Shares of this Zacks Rank #3 (Hold) leading operator of global exchanges and clearing houses have outperformed the industry in a year’s time. The stock has gained 10.1% compared with the industry’s increase of 1.5%.
Moody’s surpassed estimates in each of the last four quarters. It has a trailing four-quarter earnings surprise of 13.81%, on average.
OTC Markets surpassed estimates in three of the last four quarters. It has a trailing four-quarter earnings surprise of 10.54%, on average.
SWK Holdings surpassed estimates in one of the last four quarters. It has a trailing four-quarter earnings surprise of 106.67%, on average.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Intercontinental Updates Plans to Launch IFAD in Abu Dhabi
Intercontinental Exchange, Inc. (ICE - Free Report) updated its plans to introduce new exchange ICE Futures Abu Dhabi (IFAD). This exchange will host the world’s first futures contracts based on Abu Dhabi National Oil Company’s (ADNOC) Murban crude oil. The plan was earlier declared in the fourth quarter of 2019. Pending regulatory approvals, IFAD and trading in Murban futures contracts, will be launched later in the first quarter of 2021.
To support the launch of ICE Futures Abu Dhabi, nine of the world’s largest energy traders have collaborated with ICE. The list includes BP, GS Caltex, INPEX, JXTG, PetroChina, PTT, Shell, TOTSA (Total) and Vitol.
The partnership with ADNOC and nine of the world’s largest physical traders of Murban crude to launch ICE Futures Abu Dhabi will provide a solid opportunity for Murban to become a new global crude benchmark.
Sourced from Abu Dhabi, Murban crude is recognized for its production volumes, reliable supply and consistent quality — producing approximately 1.7M barrels per day.
A new pricing mechanism for ADNOC’s Murban crude has been declared by Abu Dhabi’s Supreme Petroleum Council (SPC) on Nov 4, 2019. As a result, Murban pricing will be market-driven and forward pricing using Murban futures contract as its price marker.
The introduction of IFAD on the first quarter of 2021 will provide an opportunity to trade and hedge Murban in a regulated, transparent and accessible venue. The pricing and trading mechanism of Murban crude will change remarkably with the launch of IFAD and the recent decision of SPC. Additionally, Abu Dhabi's status has been boosted as a global energy hub.
ICE Murban futures will bring transparent pricing and a forward curve to participants, establishing a secondary market for the first time. Murban represents a new oil benchmark, with this light sweet crude well-positioned to serve a global market.
The contract will complement ICE’s global oil complex of more than 600 products covering 47 geographic locations. This provides participants with delivery at the point of consumption, capital efficiency, and inter-commodity spreads between ICE exchanges.
Intercontinental Exchange, the leading marketplace for global crude and refined oil, offers trading and clearing services across a range of global benchmark contracts, which include Brent, West Texas Intermediate, or WTI, Platts Dubai, Gasoil, Heating Oil and many additional grades and related spread contracts.
Therefore, this new launch will complement the Intercontinental Exchange’s Energy business, which is already performing strongly. In the first half of 2020, total energy volume increased 34% and revenues rose 30%. Total oil volume increased 33% due to increased risk management activity driven by shifting supply/demand dynamics related to various geopolitical events and the COVID-19 pandemic.
Intercontinental Exchange’s third-quarter heating oil average daily volume (ADV) increased 184% year over year, while RBOB gasoline increased 261% year over year.
Shares of this Zacks Rank #3 (Hold) leading operator of global exchanges and clearing houses have outperformed the industry in a year’s time. The stock has gained 10.1% compared with the industry’s increase of 1.5%.
Stocks to Consider
Some better-ranked stocks from the finance sector include Moody’s Corporation (MCO - Free Report) , OTC Markets Group Inc. (OTCM - Free Report) and SWK Holdings Corp (SWKH - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Moody’s surpassed estimates in each of the last four quarters. It has a trailing four-quarter earnings surprise of 13.81%, on average.
OTC Markets surpassed estimates in three of the last four quarters. It has a trailing four-quarter earnings surprise of 10.54%, on average.
SWK Holdings surpassed estimates in one of the last four quarters. It has a trailing four-quarter earnings surprise of 106.67%, on average.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>