ICE Midland WTI American Gulf Coast Futures Begin Trading With Over Two Million Barrels Traded
28 January 2022 - 12:00AM
Business Wire
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global
provider of data, technology, and market infrastructure, today
announced that ICE Midland WTI American Gulf Coast futures (Midland
WTI AGC) began trading on January 24, with the equivalent of over
2.8 million barrels traded within the first three days.
The contract, which trades under the code HOU, is deliverable at
both Magellan Midstream Partners’ Magellan East Houston (MEH)
terminal and Enterprise Products Partners L.P.’s Enterprise Crude
Houston (ECHO) terminal, which are collectively supplied by over
four million barrels per day of crude pipeline capacity.
By the close of its third day of trading, a total of 2,874 ICE
Midland WTI AGC futures had traded. Each futures contract is
equivalent to 1000 barrels of Permian Basin originated WTI crude
oil.
“The early trading activity in HOU, with the expanded
infrastructure of Magellan and Enterprise behind it, marks a
significant step in the development of the U.S. Gulf Coast as a
global benchmark pricing location for U.S. crude,” said Jeff
Barbuto, Global Head of Oil Markets at ICE. “As the market
develops, participants will find more ways to utilize HOU for
acquiring, trading and managing risk around Midland WTI as it
becomes an increasingly important grade of crude globally.”
As recently announced, to further facilitate trading between the
MEH and ECHO terminals to create one large liquidity pool, Magellan
and Enterprise have agreed to transfer Midland WTI barrels between
the terminals for no charge during the first year if the barrels
are not delivered to the buyer’s preferred terminal, and at 10
cents per barrel for all other WTI transfers meeting HOU quality
specifications.
The Midland WTI AGC futures contract has export access to over
14 ship docks in the Houston area. Together Magellan and
Enterprise’s Houston distribution systems offer 60 million barrels
of combined crude storage capacity. These distribution systems
connect to a further 90 million barrels of storage capacity,
bringing the total to around 150 million barrels of total crude
storage capacity in the Houston area, as well as offering
additional direct access to water for exports and floating
storage.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune
500 company that designs, builds and operates digital networks to
connect people to opportunity. We provide financial technology and
data services across major asset classes that offer our customers
access to mission-critical workflow tools that increase
transparency and operational efficiencies. We operate
exchanges, including the New York Stock Exchange, and
clearing houses that help people invest, raise capital and
manage risk across multiple asset classes. Our comprehensive fixed
income data services and execution capabilities provide
information, analytics and platforms that help our customers
capitalize on opportunities and operate more efficiently. At ICE
Mortgage Technology, we are transforming and digitizing the
U.S. residential mortgage process, from consumer engagement through
loan registration. Together, we transform, streamline and automate
industries to connect our customers to opportunity.
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 here. 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, 2020, as
filed with the SEC on February 4, 2021.
ICE- CORP
Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20220127005575/en/
ICE Media Contact: Rebecca Mitchell
Rebecca.Mitchell@ice.com +44 7951 057 351
ICE Investor Contact: Mary Caroline O’Neal
marycaroline.oneal@ice.com (770) 738-2151
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