CHICAGO, Sept. 24, 2018 /PRNewswire/ -- Suppliers,
refiners and end users of U.S. crude oil will have a new way to
price and hedge WTI light sweet crude oil in Houston beginning in Q4 2018. CME Group, the
world's leading and most diverse derivatives marketplace, will
offer a new WTI Houston Crude Oil futures contract with three
physical delivery locations on the Enterprise Houston system,
pending regulatory review. WTI Houston Crude Oil futures will be
listed with and subject to the rules of NYMEX, beginning with the
January 2019 contract month.
The new WTI Houston Crude Oil futures contract expands CME
Group's already robust suite of crude oil futures and options and
will complement the global benchmark NYMEX WTI Light Sweet Crude
Oil futures. Participants will have the flexibility to make or take
delivery of U.S. light sweet crude oil at the Enterprise Crude
Houston (ECHO) terminal, Enterprise Houston Ship Channel (EHSC) or
Genoa Junction through the new contract.
"Houston's importance as a
trading and export hub for physical crude oil from Cushing and the Permian Basin continues to
evolve due to the shale oil revolution and repeal of the crude oil
export ban," said Peter Keavey, CME
Group Global Head of Energy. "The WTI Houston contract offers
commercial customers and physical traders a way to hedge their
physical price risk, enhances the transparency of U.S. crude oil
prices on the water in Houston and
reinforces the strength of our global benchmark WTI Cushing
contract. We believe the network of domestic users and location
close to export facilities will ensure this contract provides
transparent price discovery and risk transfer in the growing
Houston region."
Enterprise has a network of 19 ship docks along the Gulf Coast
and is the largest exporter of crude oil in the U.S. and the ideal
provider of delivery points for this physical WTI Houston futures
contract. Through its network of pipelines, storage and marine
terminals, the firm has the capability to handle the flow of more
than four million barrels per day of crude oil. Participants will
also benefit from access to a diverse group of refiners, storage
facilities and export facilities through the Enterprise
network.
For more information, please visit
www.cmegroup.com/wti houston.
CME Group will host a conference call for media QA
at 9:00 a.m. Central Time today.
CME Group Global
Head of Energy, Peter Keavey, and
Managing Director of Energy Research, Owain
Johnson, will be available for press questions at this
time.
Participant Access Information
Please join the event conference 5-10 minutes prior to start
time, using one of the numbers below, along with the confirmation
code:
United States:
800-949-2175 / 323-994-2131
U.K.: 0800-279-7204 / +44 (0)330-336-9411
Singapore: 800-186-5085 /
+65-6320-9075
Participant Confirmation Code: 9226820
About CME Group
As the world's leading and most
diverse derivatives marketplace, CME Group (www.cmegroup.com) is
where the world comes to manage risk. CME Group exchanges
offer the widest range of global benchmark products across all
major asset classes, including futures and options based
on interest rates, equity indexes, foreign
exchange, energy, agricultural
products and metals. Around the world, CME Group
brings buyers and sellers together through its CME Globex®
electronic trading platform. CME Group also operates one of
the world's leading central counterparty clearing providers
through CME Clearing, which offers clearing and settlement
services across asset classes for exchange-traded and
over-the-counter derivatives. CME Group products and services
ensure that businesses around the world can effectively manage risk
and achieve growth.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex and E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
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CME-G
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SOURCE CME Group