From Today, A Move To Revolutionise How Middle East Oil Is Sold

But on Monday, when Abu Dhabi begins selling futures contracts for its oil and then shipping the barrels from Fujairah, it will mark an aggressive shift by the emirate. It hopes to change the way nearly one-fifth of the world's crude is priced.

Tucked between the Gulf of Oman and a craggy mountain range, the dusty port Fujairah isn't an obvious base from which to try and revolutionize the Middle East's oil markets. But on Monday, when Abu Dhabi begins selling futures contracts for its oil and then shipping the barrels from Fujairah, it will mark an aggressive shift by the emirate. It hopes to change the way nearly one-fifth of the world's crude is priced. Persian Gulf states pump nearly 20 million barrels of oil a day and Abu Dhabi wants the futures for its flagship Murban grade to become the region's main benchmark. The Gulf's biggest producers -- including Saudi Arabia, Iraq and the United Arab Emirates, of which Abu Dhabi is the capital -- have traditionally priced their barrels based on benchmarks from other regions. They've mostly sold their crude directly to refiners or international companies with stakes in their fields. Crucially, they've prevented those customers from re-selling the oil and benefiting from arbitrage opportunities that exist in energy markets.