Intercontinental Exchange Announces Launch of Permian WTI Crude Oil Futures Deliverable in Houston
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global
exchanges and clearing houses and provider of data and listings
services, announced the launch today of physically delivered Permian WTI
(Contract code: HOU) crude oil futures, deliverable in Houston, Texas.
Houston has become the pricing center for U.S. crude oil production and
exports, and the new Permian WTI futures contract is designed to serve
hedging and trading opportunities in this growing market.
With the growth in shale oil production in the Permian basin in West
Texas, which is now estimated at 3.5 million barrels a day, and
increased U.S. exports alongside growing international demand for light
sweet crude oil, Houston has become the central delivery point for U.S.
crude. The ICE Permian WTI futures contract is designed to provide price
discovery, settlement and delivery at Magellan Midstream Partners,
L.P.’s (NYSE: MMP) terminal in East Houston.
“When we were designing the Permian WTI Futures, customers consistently
told us that it was critical to offer a high-quality, well known crude
oil spec deliverable in Houston, and available for the waterborne export
market,” said Jeff Barbuto, Vice President of Oil Markets at ICE. “By
selecting Magellan’s East Houston terminal as the delivery point, we’re
offering customers a trusted standard for WTI straight from the Permian
Basin, and over time, it’s one that we think could develop into a
benchmark for other grades to price around.”
“Magellan’s comprehensive Houston distribution system provides delivery
options to all local refineries throughout the ship channel and Texas
City and access to export capabilities at our Seabrook Logistics crude
oil marine facility,” said Mark Roles, Magellan’s vice president of
commercial crude oil. “The new ICE contract provides customers with
extensive delivery options, pricing transparency, and liquidity in the
Houston Gulf Coast crude oil market while increasing demand for
Magellan’s pipeline and storage services.”
Later today, ICE plans to list 36 months of flat price Permian WTI (HOU)
contracts and a full matrix of calendar spreads, as well as
inter-commodity spreads for HOU/Brent and HOU/WTI.
ICE is home to the world’s leading global
crude and refined oil markets. Half of the world’s oil and refined
futures are traded on ICE’s markets, including futures and options on
the global benchmark ICE
Brent, the U.S. benchmark West
Texas Intermediate (WTI) crude, the Asian benchmark Platts
Dubai crude, Gasoil,
Heating Oil and RBOB Gasoline, as well as more than 500 additional
grades and oil products.
About Intercontinental Exchange
Intercontinental
Exchange (NYSE: ICE) is a Fortune 500 and Fortune Future 50 company
formed in the year 2000 to modernize markets. ICE serves customers by
operating the exchanges, clearing
houses and information services they rely upon to invest, trade and
manage risk across global financial and commodity markets. A leader in
market data, ICE Data
Services serves the information and connectivity needs across
virtually all asset classes. As the parent company of the New
York Stock Exchange, the company raises more capital than any other
exchange in the world, driving economic growth and transforming markets.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual property
rights of Intercontinental Exchange, Inc. and/or its affiliates is
located at http://www.intercontinentalexchange.com/terms-of-use.
Key Information Documents for certain products covered by the EU
Packaged Retail and Insurance-based Investment Products Regulation can
be accessed on the relevant exchange website under the heading “Key
information Documents (KIDS)”.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995 -- Statements in this press release regarding ICE's business
that are not historical facts are "forward-looking statements" that
involve risks and uncertainties. For a discussion of additional risks
and uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see ICE's Securities and
Exchange Commission (SEC) filings, including, but not limited to, the
risk factors in ICE's Annual Report on Form 10-K for the year ended
December 31, 2017, as filed with the SEC on February 7, 2018.
SOURCE: Intercontinental Exchange
ICE-CORP
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