- You have until 1pm CST the day after expiry to execute an Exchange for Physical (EFP). This is also the deadline to declare your delivery point (ECHO or MEH).
- EFPs allow flexibility on delivery locations and dates.
- If no EFP is entered by 2pm CST, ICE will notify clearing members whom you have been matched up with.
Midland vs. Cushing
Markets, Explained
U.S. oil has a story to tell as new dynamics shape the future of trading. We explore the legacy of American energy in Texas and Oklahoma to uncover why WTI Midland is emerging as a key benchmark in global oil trading.
ICE Midland WTI (HOU)
Additional Inter-commodity spreads will be offered to help customers mitigate price risk between various locations and grades:
| Midland WTI HOU vs ICE WTI Futures (Cushing) |
|---|
| Price and quality differential between Mid-continent WTI vs Houston WTI. |
| Midland WTI HOU vs ICE Brent Futures |
|---|
| U.S. crude where it meets the water vs the global crude oil benchmark. |
Each contract represents 1,000 barrels and the price increment is $0.01 per barrel.
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.
| Parameter | Units | Min | Max | 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 | |
| RVP | PSI | 9.5 | ASTM D6377 | |
| BS&W | % (v/v) | 1.0 | ASTM D4007 per API MPMS 10.4 | |
| Nickel | mg/kg | 2.0 | ASTM D5708, Procedure B or D8252 | |
| Vanadium | mg/kg | 2.0 | ASTM D5708, Procedure B or D8252 | |
| Iron | mg/kg | 10.0 | ASTM D5708, Procedure B or D8252 |
Effectively manage crude supply risks with ICE HOU
Market participants in the U.S. physical crude sector often face challenges related to Midland crude supply. For those who have experienced, or are concerned about these issues, the ICE Midland WTI Futures contract (HOU) provides a viable tool to mitigate risk.
Exporters receive off spec Midland WTI at USGC terminals, as reported in the oil trade press
Refiners receive non ratable volumes of Midland WTI, according to market participants
Address production issues with assured physical delivery of on-spec Midland WTI
The HOU contract serves as a benchmark for Midland-origin and Midland-quality crude production and exports. Its pricing and physical delivery point is in Houston, the most active crude trading hub on the USGC. Going to expiry in the HOU contract guarantees the physical delivery of on-spec and ratably delivered Midland WTI crude oil. This oil can be utilized in U.S. domestic refineries or exported to European and Asian refiners. Additionally, in the Atlantic Basin, Midland WTI is deliverable into the Brent complex.
Strong physical delivery performance
Deliveries of Midland WTI crude oil through the HOU contract averaged 4.4 million barrels each month in the second half of 2023.
Regulated, transparent delivery process
ICE provides anonymous trading and clearing with stringent procedures that ensure a robust, fair, and transparent marketplace with defined physical delivery protocols. Every HOU delivery also accrues interest on delivery margins at the ICE deposit rate.
Mitigate physical supply risk
Guaranteed on-spec deliveries support timely loading of export vessels, helping avert demurrage fees. Refineries in the U.S., Europe, and Asia receive volumes as planned, on-spec and at the agreed-upon timeframe, supporting smooth operations.
ICE Midland WTI American Gulf Coast futures (code: HOU)
Average Daily Volumes & Open Interest
ICE Midland WTI American Gulf Coast futures (code: HOU)
Physical Delivery
HOU delivery - how it works
EFP window
Free terminal transfers
If matched with someone choosing a different terminal, every mismatched buyer is guaranteed a free pump over to their preferred terminal (ECHO or MEH). This fee waiver also applies to barrels delivered via EFP or ADP.
See Pump Over Fee Waiver for details.
Optional ADP
You may enter an ADP (Alternative Delivery Procedure) anytime after matchup until the end of the delivery period.
Standard delivery
If no EFP or ADP is executed, you proceed under HOU contract rules, guaranteeing ratable, on-spec Midland crude.
Please see ONEOK HOU Futures Contract and General Transfers (oneok.com) and HOU Futures Contract and General Transfers (enterpriseproducts.com) for more details.
Midland WTI crude quality readings
Midland WTI (West Texas Intermediate) Crude Quality Readings are crucial metrics used in the oil industry to assess the physical and chemical characteristics of Midland WTI crude oil.
These readings provide essential information about the oil's composition, including its density, viscosity, sulfur content, and other key properties.
Investors, traders, and energy professionals closely monitor these quality readings as they significantly impact the pricing and trading of Midland WTI crude oil in the global market. The data derived from these readings helps market participants make informed decisions about refining processes, transportation, and overall market dynamics.
Accurate Midland WTI Crude Quality Readings play a pivotal role in shaping the energy landscape, influencing investment strategies, and ensuring the efficient functioning of the oil market.
Purchase
ICE Midland WTI futures (HOU)
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.
Store
Between all ONEOK and Enterprise facilities storage capacity exceeds over 60 million barrels. Through the ONEOK (previously Magellan) System, you have the ability to store HOU quality crude at MEH, Galena Park, and Seabrook. At Enterprise facilities, you can store HOU crude at both ECHO and Enterprise Hydrocarbons Terminal (EHT).
Export
At both the ONEOK Seabrook and Galena Park locations and Enterprise Hydrocarbons Terminal, you have the ability to export HOU quality crude oil. Between all terminals there are over 13 deep-water ship docks which equates to over 2.5 millions of barrels per day loading capacity.
Margin and offsets
Customers can benefit from margin offsets as high as 95% when clearing HOU alongside other oil positions cleared at ICE Clear Europe, with offsets across a range of 700 oil contracts, including ICE Brent, ICE Gasoil, ICE Midland WTI, ICE Dubai (Platts), ICE Murban, as well as RBOB Gasoline.
Latest insights
ICE Midland WTI American Gulf Coast (AGC) futures factsheet
Learn more about the ICE Midland WTI American Gulf Coast (AGC) futures contract, an efficient, transparent way to price and hedge Midland‑quality WTI at the Gulf Coast, the primary hub for U.S. crude pricing. With flexible delivery options and strong connection to Houston’s infrastructure, the contract offers a benchmark that reflects today’s U.S. crude market fundamentals.
Exclusive briefing on Midland WTI Crude Oil Futures (HOU)
In a May 2024 webinar held by ICE, Mike Wittner, Global Head of Oil Market Research, presented on how ICE's Midland WTI contract (HOU) provides an effective solution to manage price & physical supply risks. Click the link below to watch the video replay and view the presentation slides.
Midland WTI into Brent: A practical trading guide
Now Midland WTI can be delivered into the largest and most liquid oil contract in the world. ICE Midland WTI (Code: HOU) enables participants to directly price and hedge the marginal domestic barrel of Midland quality crude that meets Platts Midland specifications accepted into Dated Brent.
The Texas crude triangle: Driving global crude
As Permian production surges and Houston takes center stage, is it time to leave Cushing behind and embrace a new, more accurate pricing model? Discover how the ICE Midland WTI (HOU) contract could be the future of US crude pricing.
ICE Midland WTI American Gulf Coast (AGC) futures factsheet
Learn more about the ICE Midland WTI American Gulf Coast (AGC) futures contract, an efficient, transparent way to price and hedge Midland‑quality WTI at the Gulf Coast, the primary hub for U.S. crude pricing. With flexible delivery options and strong connection to Houston’s infrastructure, the contract offers a benchmark that reflects today’s U.S. crude market fundamentals.
Exclusive briefing on Midland WTI Crude Oil Futures (HOU)
In a May 2024 webinar held by ICE, Mike Wittner, Global Head of Oil Market Research, presented on how ICE's Midland WTI contract (HOU) provides an effective solution to manage price & physical supply risks. Click the link below to watch the video replay and view the presentation slides.
Midland WTI into Brent: A practical trading guide
Now Midland WTI can be delivered into the largest and most liquid oil contract in the world. ICE Midland WTI (Code: HOU) enables participants to directly price and hedge the marginal domestic barrel of Midland quality crude that meets Platts Midland specifications accepted into Dated Brent.
The Texas crude triangle: Driving global crude
As Permian production surges and Houston takes center stage, is it time to leave Cushing behind and embrace a new, more accurate pricing model? Discover how the ICE Midland WTI (HOU) contract could be the future of US crude pricing.