Enterprise and ONEOK Extend Terminal Transfer Fee Waiver for ICE Midland WTI (HOU) Crude Deliveries to the End of 2028
ICE announced that Enterprise Products Partners and ONEOK have extended their fee waiver arrangement for crude oil transfers between ECHO and MEH terminals for ICE Midland WTI futures contract (HOU) deliveries until December 31, 2028. The extension comes as physical deliveries of ICE Midland WTI were double that of Cushing WTI in 2024.
The arrangement allows buyers to transfer crude oil between terminals at no cost if their preferred delivery terminal wasn't selected. Over 82 million barrels were delivered through HOU's exchange delivery mechanism in 2024, with 5.5 million HOU futures traded and average daily volume of 21,000 contracts.
Notable developments include Continental Resources switching part of its Permian production pricing to HOU, and Platts launching a daily price assessment of Midland WTI crude as a differential to HOU. ICE achieved record trading volumes with 1 billion energy derivatives contracts in 2024, including 655 million oil futures and options contracts.
ICE ha annunciato che Enterprise Products Partners e ONEOK hanno esteso l'accordo di esenzione dalle commissioni per i trasferimenti di petrolio greggio tra i terminal ECHO e MEH per le consegne dei contratti futures ICE Midland WTI (HOU) fino al 31 dicembre 2028. L'estensione arriva in un momento in cui le consegne fisiche dell'ICE Midland WTI sono risultate doppie rispetto a quelle del Cushing WTI nel 2024.
L'accordo consente agli acquirenti di trasferire petrolio greggio tra i terminal senza alcun costo se il loro terminal di consegna preferito non è stato selezionato. Oltre 82 milioni di barili sono stati consegnati tramite il meccanismo di consegna dell'HOU nel 2024, con 5,5 milioni di futures HOU scambiati e un volume medio giornaliero di 21.000 contratti.
Sviluppi notevoli includono Continental Resources che ha cambiato parte della sua produzione del Permiano per il pricing HOU e Platts che ha lanciato una valutazione del prezzo giornaliera del petrolio greggio Midland WTI come differenziale rispetto all'HOU. ICE ha raggiunto volumi record di scambi con 1 miliardo di contratti derivati energetici nel 2024, inclusi 655 milioni di contratti futures e opzioni sul petrolio.
ICE anunció que Enterprise Products Partners y ONEOK han extendido su acuerdo de exención de tarifas para las transferencias de petróleo crudo entre los terminales ECHO y MEH para las entregas del contrato de futuros ICE Midland WTI (HOU) hasta el 31 de diciembre de 2028. La extensión se produce en un momento en que las entregas físicas de ICE Midland WTI fueron el doble que las de Cushing WTI en 2024.
El acuerdo permite a los compradores transferir petróleo crudo entre terminales sin costo alguno si su terminal de entrega preferido no fue seleccionado. Más de 82 millones de barriles fueron entregados a través del mecanismo de entrega de HOU en 2024, con 5,5 millones de futuros HOU negociados y un volumen diario promedio de 21,000 contratos.
Desarrollos notables incluyen a Continental Resources cambiando parte de su precios de producción del Permian a HOU, y Platts lanzando una evaluación de precios diaria para el petróleo crudo Midland WTI como un diferencial con respecto a HOU. ICE alcanzó volúmenes récord de negociación con 1 mil millones de contratos de derivados energéticos en 2024, incluidos 655 millones de contratos de futuros y opciones de petróleo.
ICE는 Enterprise Products Partners와 ONEOK가 ICE Midland WTI 선물 계약(HOU)의 ECHO와 MEH 터미널 간 원유 이송에 대한 수수료 면제 약정을 2028년 12월 31일까지 연장했다고 발표했습니다. 이 연장은 2024년 중 ICE Midland WTI의 물리적 배달량이 Cushing WTI의 두 배였던 시점에 이루어졌습니다.
이 약정은 구매자가 선호하는 인도 터미널이 선택되지 않은 경우 터미널 간에 원유를 무료로 이송할 수 있도록 허용합니다. 2024년 동안 HOU의 교환 배달 메커니즘을 통해 8200만 배럴 이상이 배달되었으며, 550만 HOU 선물이 거래되고 평균 일일 거래량은 21,000 계약이었습니다.
주요 개발 사항으로는 Continental Resources가 Permian 생산 가격의 일부를 HOU로 전환한 것과 Platts가 HOU와의 차별로 Midland WTI 원유에 대한 일일 가격 평가를 시작한 것이 포함됩니다. ICE는 2024년에 10억 개의 에너지 파생 상품 계약으로 기록적인 거래량을 달성했으며, 여기에는 6억 5500만 개의 석유 선물 및 옵션 계약이 포함됩니다.
ICE a annoncé qu'Enterprise Products Partners et ONEOK ont prolongé leur accord d'exemption de frais pour les transferts de pétrole brut entre les terminaux ECHO et MEH pour les livraisons du contrat à terme ICE Midland WTI (HOU) jusqu'au 31 décembre 2028. Cette prolongation intervient alors que les livraisons physiques de l'ICE Midland WTI étaient le double de celles du Cushing WTI en 2024.
L'accord permet aux acheteurs de transférer du pétrole brut entre les terminaux sans coût si leur terminal de livraison préféré n'a pas été sélectionné. Plus de 82 millions de barils ont été livrés par le biais du mécanisme de livraison de HOU en 2024, avec 5,5 millions de futures HOU échangés et un volume quotidien moyen de 21 000 contrats.
Parmi les développements notables, Continental Resources a modifié une partie de ses prix de production Permian en les liant à HOU, et Platts a lancé une évaluation quotidienne des prix du pétrole brut Midland WTI comme un différentiel par rapport à HOU. ICE a atteint des volumes d'échange record avec 1 milliard de contrats dérivés énergétiques en 2024, dont 655 millions de contrats de futures et d'options sur le pétrole.
ICE gab bekannt, dass Enterprise Products Partners und ONEOK ihre Gebührenbefreiungsvereinbarung für Rohöltransfers zwischen den Terminals ECHO und MEH für die Lieferungen des ICE Midland WTI-Futures-Kontrakts (HOU) bis zum 31. Dezember 2028 verlängert haben. Diese Verlängerung erfolgt zu einem Zeitpunkt, an dem die physischen Lieferungen von ICE Midland WTI im Jahr 2024 doppelt so hoch waren wie die von Cushing WTI.
Die Vereinbarung ermöglicht es Käufern, Rohöl zwischen Terminals ohne Kosten zu transferieren, wenn ihr bevorzugter Lieferterminal nicht ausgewählt wurde. Über 82 Millionen Barrel wurden 2024 über den Liefermechanismus von HOU geliefert, mit 5,5 Millionen HOU-Futures, die gehandelt wurden und einem durchschnittlichen täglichen Volumen von 21.000 Verträgen.
Bemerkenswerte Entwicklungen umfassen, dass Continental Resources einen Teil seiner Permian-Produktionspreise auf HOU umgestellt hat und Platts eine tägliche Preisbewertung für Midland WTI-Rohöl als Differenz zu HOU eingeführt hat. ICE erreichte 2024 Rekordhandelsvolumina mit 1 Milliarde Energie-Derivateverträge, einschließlich 655 Millionen Öl-Futures- und Optionsverträge.
- Fee waiver extension until 2028 enhances market liquidity and trading flexibility
- HOU physical deliveries doubled Cushing WTI volumes in 2024
- 82 million barrels delivered through HOU exchange mechanism in 2024
- Major industry adoption with Continental Resources switching to HOU pricing
- Record trading volume of 1 billion energy derivatives contracts in 2024
- None.
Insights
The extension of the terminal transfer fee waiver between Enterprise and ONEOK through 2028 marks a pivotal development in U.S. crude oil markets, particularly for Gulf Coast pricing dynamics. The arrangement eliminates the standard
The market impact is already evident in the impressive 2024 statistics:
- 82 million barrels delivered through the exchange mechanism
- 21,000 contracts average daily trading volume
- HOU physical deliveries doubled compared to Cushing WTI
The waiver's extension serves multiple strategic purposes: It enhances market efficiency by providing flexibility in delivery location choices, reduces transaction costs for market participants and strengthens HOU's position as the preferred Gulf Coast pricing benchmark. The shift of Continental Resources' Permian production pricing to HOU, along with Platts and General Index launching HOU-based assessments, demonstrates the contract's growing prominence in price discovery.
The margin offset benefits of up to
The market's evolution towards Gulf Coast pricing reflects the region's role as the primary export hub for U.S. crude, offering more relevant price discovery for international trades. This structural shift suggests a long-term transformation in North American crude oil pricing mechanisms, with potential implications for global oil market dynamics.
“In 2024, crude producers, refiners and exporters moved more of their pricing and hedging away from a WTI Cushing Basis to ICE Midland WTI (HOU), while price reporting agencies have launched new assessments which price all North American crude grades as differentials to HOU,” said Jeff Barbuto, Global Head of Oil Markets at ICE. "Physical deliveries of ICE Midland WTI were twice that of the Cushing WTI contract in 2024. Extending the fee waiver through 2028 provides the industry with added incentive to migrate crude pricing to the
If customers take an HOU futures position to delivery, buyers can submit a preferred delivery terminal to the seller who governs the delivery terminal selection of MEH or ECHO. If the buyer’s preferred terminal was not selected, it can transfer the crude oil delivered against HOU between the two terminals at no cost. The waiver also applies to customers who take delivery of HOU via ICE’s Exchange for Physical (EFP) and Alternative Delivery Procedure (ADP) mechanisms. If the buyer executes an EFP or ADP with a seller at a non-preferred terminal, the buyer may transfer the barrels to the other terminal at no cost so long as they provide proof of the EFP or ADP to ONEOK or Enterprise. Currently, a
Over 82 million barrels were delivered through the exchange delivery mechanism for HOU in 2024. EFPs are also heavily traded as they provide customers with the flexibility to deliver barrels to different locations and have accommodating delivery dates. A total of 5.5 million HOU futures traded in 2024 with average daily volume of 21,000 contracts.
ICE has seen a significant endorsement of HOU as the price of Midland crude, with Continental Resources switching a portion of its Permian production to price off of HOU, replacing a differential to WTI Cushing. Similarly, in recognition of HOU's establishment within Midland WTI pricing, Platts, part of S&P Global Commodity Insights, launched a daily price assessment of Midland WTI crude as a differential to HOU, effective January 22, 2025. This follows General Index’s launch of a full suite of all North American Crude grades priced as differentials to HOU, also replacing WTI Cushing as a benchmark.
ICE offers HOU time spreads, as well as inter-commodity spreads with Brent and WTI Cushing (Domestic Sweet) to help customers mitigate price risk between locations and grades. Meanwhile, customers can benefit from margin offsets as high as
ICE is home to the most liquid energy markets in the world to manage risk exposure. A record 1 billion energy derivatives contracts traded on ICE in 2024, including a record 655 million oil futures and options contracts.
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FAQ
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