Houston — Intercontinental Exchange has two new delivery points in the Houston area, a move giving further options for WTI Midland crude exports from the US Gulf Coast, ICE said Tuesday.
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Other enhancements to ICE's Permian WTI Futures contract include crude storage futures in East Houston and crude quality data to include metals data.
In a statement, ICE named the Magellan Midstream Galena Park terminal and Seabrook Logistics terminal as the two new delivery locations in the Houston area. The delivery options are expected to be available later this quarter and were included in response to client requests. Other marine terminals are also being considered as delivery points for the contract, the company said.
The delivery points are in addition to the contract's original delivery point to the Magellan East Houston terminal.
"Our customers have expressed interest in getting MEH-quality crude delivered directly to highly efficient export facilities," Jeff Barbuto, ICE's Global Head of Oil Sales and business development, said the statement.
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Other enhancements to the contract will be the addition of crude storage futures deliverable at the Magellan East Houston locations. The storage futures will represent the right to store 1,000 barrels of Permian WTI at MEH.
Lastly, ICE will begin reporting metals data in addition to the other quality data currently available on the companies ICE Permian WTI Futures contract website. The metals data will include monthly levels of nickel, vanadium and iron in WTI available at MEH. International buyers, especially in Europe, have in the past expressed concern regarding metals content in US light sweet crudes. The metals data will help provide additional quality assurance regarding the grade, a company spokesman said.
The ICE Permian WTI Futures contract launched October 22 and is steadily gaining traction in the market with an average of 727 daily lots in October and an average of 2,367 lots in January.
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