SINGAPORE, July 8 (Reuters) - S&P Global Platts said on

Tuesday it was proposing to change the pricing mechanism for

United Arab Emirates' Murban crude in the Dubai oil benchmark

from 2026 to better reflect market dynamics.

The price-reporting agency said in a document on its website

that it was proposing the Abu Dhabi grade could be priced above,

below or at parity with Dubai and other medium-sour grades in

the basket.

Currently, a premium is applied to light-sour Murban to

reflect its higher quality versus other medium-sour grades -

Dubai, Oman, Upper Zakum and al-Shaheen - that can be delivered

during the Platts Market on Close process that sets the Dubai

benchmark price.

However, rising supplies of Murban crude have recently

driven down the price of the grade, which in turn has weighed on

the Dubai benchmark that prices more than 14 million barrels per

day of Middle East oil to Asia.

Platts also said it planned to change the calculation in

pricing Murban's quality difference with other grades in the

Dubai basket.

Pending feedback from the industry, the changes will take

effect from January 2, 2026, Platts said.

"The role of Murban in the Dubai basket has evolved in

recent years in light of shifting market dynamics," Platts said.

"These include OPEC+ production cuts restraining the

availability of medium sour grades and increased supplies of

lighter, sweeter crudes at the same time, which have more

frequently led to a narrowing or reversal of sweet/sour values."

Murban accounts for two-thirds of Abu Dhabi National Oil

Co's production.

Upgrades at regional and global refineries have also

increased demand for heavier and more sour crudes, Platts said.

"These market shifts have significantly increased the

regularity with which Murban is declared into Dubai convergences

and Murban has played a greater role in defining the benchmark,"

it added.

Under the proposed methodology, Platts would assess the

daily Murban quality adjustment based on the net price

differences between Platts assessments for Murban and Oman for

cargoes loading two months ahead over five business days prior

to the day of publication.

"This is great news for Dubai," a Singapore-based trader

said, adding that the changes would prevent Murban from limiting

gains for the Middle East benchmark.