ICE to Align Crude Quality Contract Specifications of ICE Midland WTI (HOU) Futures with Physical Gulf Coast Crude Cargoes
February 28 2024 - 7:30AM
Business Wire
Intercontinental Exchange (NYSE: ICE), a leading global provider
of technology and data, today announced plans to further align the
ICE Midland WTI (ICE:HOU) futures contract with Midland WTI crude
oil included in the Dated Brent basket.
The contract changes to the crude oil quality of ICE HOU futures
include the addition of a maximum Iron content of 10 milligrams per
kilogram (mg/kg) and to replace the combined Nickel and Vanadium
maximum content of 3.0 mg/kg to individual maximum contents for
Nickel and Vanadium of 2.0 mg/kg each. In addition, the Reid Vapor
Pressure (RVP) maximum of the crude will increase by 0.5 pounds per
square inch (Psi) to 9.5 Psi.
The contract amendments mean the crude oil quality that is
deliverable via ICE’s HOU futures contract will align with globally
accepted Midland-WTI quality physical cargoes loading at the U.S.
Gulf Coast for export to Europe and their potential inclusion in
the Platts Dated Brent basket assessment. The changes are expected
to be effective from the June 2024 contract month.
“This is an important final step to align ICE’s Midland WTI
futures contract with the globally accepted quality standard for
the Midland WTI crude grade,” said Jeff Barbuto, Global Head of Oil
Markets, ICE. “It provides the market with the only
exchange-guaranteed Midland WTI barrel on the U.S. Gulf Coast.”
HOU prices at, and is physically deliverable to, both the
Enterprise Crude Houston (ECHO) and ONEOK Magellan East Houston
(MEH) terminals, both of which are connected to Platts-approved
water terminals to deliver Midland WTI into Brent. Deliveries of
Midland WTI-quality crude oil via the HOU contract were over 4.4
million barrels each month during the second half of 2023.
Customers can benefit from margin offsets as high as 95% when
clearing HOU alongside other oil positions cleared at ICE Clear
Europe, with offsets across a range of 700 oil contracts, including
ICE Brent, ICE Gasoil, ICE WTI, ICE Dubai (Platts), ICE Murban, as
well as RBOB Gasoline.
ICE offers customers the most liquid global energy markets in
the world to manage risk exposure, with open interest hitting a
record 58.7 million contracts on February 23, 2024, up 24%
year-over-year. ICE’s global oil complex covers over 700 futures
and options contracts, centered around ICE Brent which is used to
price over three quarters of the world’s internationally traded
crude oil and is the most liquid crude oil futures and options
market in the world.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune
500 company that designs, builds and operates digital networks that
connect people to opportunity. We provide financial technology and
data services across major asset classes helping our customers
access mission-critical workflow tools that increase transparency
and efficiency. ICE’s futures, equity, and options exchanges
– including the New York Stock Exchange – and clearing
houses help people invest, raise capital and manage risk. We
offer some of the world’s largest markets to trade and clear energy
and environmental products. Our fixed income, data services
and execution capabilities provide information, analytics and
platforms that help our customers streamline processes and
capitalize on opportunities. At ICE Mortgage Technology, we
are transforming U.S. housing finance, from initial consumer
engagement through loan production, closing, registration and the
long-term servicing relationship. Together, ICE transforms,
streamlines and automates 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, 2023, as
filed with the SEC on February 8, 2024.
Category: EXCHANGES
ICE- CORP
Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20240228387743/en/
ICE Media Contact: Jess Tatham jess.tatham@ice.com
+44 7377 947136
ICE Investor Contact: Katia Gonzalez
katia.gonzalez@ice.com (678) 981-3882
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