Abu Dhabi National Oil Company said it will change how it prices its crude oil grades sold to customers worldwide, replacing a system that locks in prices months ahead with one that better reflects the market closer to delivery.

The United Arab Emirates' state-oil company said Friday that it will base its official selling prices on the prompt-month Platts Dubai benchmark--which tracks the value of Middle Eastern crude in the physical spot market--starting from Nov. 1. Adnoc will then add or subtract a differential--essentially a premium or a discount--announced ahead of the delivery month.

The company currently sets the price of its crude using the Murban futures contract traded on ICE Futures Abu Dhabi, which is determined two months before the oil is loaded onto tankers.

The switch--the first major revision to Adnoc's crude pricing methodology since 2021--means buyers will receive pricing based on a benchmark that reflects more current conditions during periods of high volatility.

Looking at other Gulf producers, Saudi Aramco sets its official selling prices each month by applying a premium or discount to key regional benchmarks, such as Oman/Dubai, allowing its crude prices to reflect shifts in market conditions closer to delivery.

"The change aligns Adnoc pricing more closely with the actual loading month," said Amena Bakr, head of Middle East energy at Kpler. "It also helps reduce the mismatch between pricing and prevailing physical-market conditions."

The U.A.E.--one of the world's largest oil producers--earlier this year quit the Organization of the Petroleum Exporting Countries, a move that frees Abu Dhabi from the cartel's production quotas and allows it to bring oil to the market on its own terms.

The country is preparing to expand output and export capacity, investing in infrastructure that reduces reliance on the Strait of Hormuz, the key Gulf shipping route that used to carry about a fifth of the world's oil before the Iran war. The International Energy Agency expects it to be one of the top contributors to non-OPEC+ supply growth in 2027.

The push to expand production comes as Gulf producers look to recover lost revenue once flows through the strait normalize, raising the prospect of a new competition for market share as the conflict reshapes the region's energy landscape.