An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
ICE Publishes Contract Rules and Procedures and Crude Oil Quality Specification for Midland WTI American Gulf Coast Futures Contract
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Intercontinental Exchange (ICE) has announced changes to its ICE Permian WTI Crude Oil futures contract, transforming it into the Midland WTI American Gulf Coast (AGC) futures contract. The update adds the Enterprise Crude Houston (ECHO) terminal as a delivery point, enhancing supply capacity to over 4 million barrels per day. This contract will facilitate better export access through 14 docks in Houston and will ultimately provide around 150 million barrels of total crude storage capacity. The changes, pending regulatory approval, will take effect in early 2022.
Increased supply capacity to over 4 million barrels per day with new delivery point (ECHO).
Access to 14 ship docks enhances export capabilities in the Houston area.
Total storage capacity increases to around 150 million barrels, providing liquidity.
Negative
None.
Midland WTI will be Underpinned by Magellan and Enterprise’s Combined Pipeline, Storage and Marine Export Facilities in the Houston Area
HOUSTON & LONDON--(BUSINESS WIRE)--
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced the changes which ICE plans to implement to the ICE Permian West Texas Intermediate (WTI) Crude Oil futures contract (ICE: HOU) as it is restructured to become the ICE Midland WTI American Gulf Coast (Midland WTI AGC) futures contract.
Currently, the ICE Permian WTI futures contract is based on Magellan Midstream Partners, L.P. (NYSE: MMP) supply capacity and is deliverable at Magellan’s East Houston (MEH) terminal. Following the announcement by ICE, Magellan and Enterprise Products Partners L.P. (NYSE: EPD) in June 2021 and the subsequent completion of a market consultation, ICE is now working to add the Enterprise Crude Houston (ECHO) terminal as a delivery point, increasing the inbound supply capacity which underpins the contract to over four million barrels per day of Midland-quality WTI crude.
With both MEH and ECHO as delivery points, the futures contract will have 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.
“U.S. crude fundamentals have been turned upside down over the last decade and we believe that WTI in Houston has become the most representative price for U.S. domestic crude oil,” said Jeff Barbuto, Global Head of Oil Markets at ICE. “Transparent pricing, deep underlying physical liquidity, expansive storage, and connectivity to local and global demand, mean Midland WTI AGC will offer the market a strong alternative for pricing and managing U.S. crude price risk.”
Following close engagement with the market, ICE has amended the crude oil quality specification of the futures contract to align more precisely with the current quality of WTI crude oil originating from the Permian Basin. This is published here along with the Contract Rules and Procedures.
Subject to the completion of regulatory processes, ICE will announce in due course when in early 2022 these changes will become effective and the ICE Permian WTI Crude Oil futures contract will be renamed as Midland WTI American Gulf Coast futures, retaining the contract code ICE:HOU.
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.
What is the new Midland WTI AGC futures contract announced by ICE?
The Midland WTI AGC futures contract is a restructured version of the ICE Permian WTI Crude Oil futures contract, now incorporating additional delivery points and increased supply capacity.
How will the changes to the ICE Permian WTI futures contract affect crude oil pricing?
The changes aim to offer a more representative pricing mechanism for U.S. domestic crude oil by enhancing supply and storage capabilities.
When will the Midland WTI AGC futures contract changes take effect?
The changes are expected to take effect in early 2022, pending regulatory approval.
What is the supply capacity of the new Midland WTI AGC futures contract?
The Midland WTI AGC futures contract will have an inbound supply capacity of over 4 million barrels per day.
Which companies are involved in the Midland WTI AGC futures contract?
The contract involves Intercontinental Exchange (ICE), Magellan Midstream Partners (MMP), and Enterprise Products Partners (EPD).
