U.S. production meets the global market. As record amounts of U.S. crude are moved to the coast for export, oil markets have seen trading activity shift to liquid hubs on the U.S. Gulf Coast. We designed a complete offering to bring a light sweet crude to the global market.
ICE’s Global Head of Oil Market Research presented at Crude Oil Quality Association (COQA), New Orleans on 2 Mar. 2023.
The market needs a transparent, liquid, physically deliverable futures contract for Midland-origin/Midland-quality crude priced in Houston - Mike Wittner highlights why Midland WTI (HOU) is an efficient tool to manage risk.
A benchmark for pricing U.S. crude production and exports, with a delivery point in Houston, the most active crude trading hub on the U.S. Gulf Coast. Deliverable into the MEH and ECHO terminals, barrels from the Permian basin are recognized for their consistent high quality.
Short-term storage of Permian WTI barrels is available at Magellan’s East Houston Terminal upon taking delivery of the high quality crude. The ability to bid in an auction for the storage space complements the contract, providing transparent pricing and the ability to plan crude movements.
Enhance export capabilities by acquiring the right to move Permian WTI and WTL barrels directly onto the water through the dock capacity auction. The auction prices include all associated costs to move a vessel’s worth of Permian WTI at Seabrook and WTL at Galena Park for loading crude to the water.
Additional Inter-commodity spreads will be offered to help customers mitigate price risk between various locations and grades:
A predictable quality specification that reflects WTI crude delivered directly from the Permian Basin. Deliverable into MEH and ECHO establishing consistent quality and price transparency in the Houston market.
Required Test Method
|API Gravity||°API, 60°F||40.0||44.0||ASTM D1298 or D5002|
|Sulfur Content||% (m/m)||0.20||ASTM D4294|
|Mercaptan Sulfur||ppm Wt||75||UOP 163|
|BS&W||% (v/v)||1.0||ASTM D4007 per API MPMS 10.4|
|Nickel & Vanadium (Combined)||mg/kg||3.0||ASTM D8252 or D5708 Procedure B|