US terminalling firms Enterprise Products Partners and Magellan Midstream Partners have joined forces with US company Intercontinental Exchange to create a new futures contract. The futures contract will use ICE’s industry-recognised, state-of-the-art trading platform. Subject to regulatory approval, the companies plan to launch the contract by early 2022.
Magellan and Enterprise will cease provisions for delivery services under current futures contracts once the Midland WTI American Gulf Coast contract is approved.
The Midland WTI American Gulf Coast contract was set up in response to demand for a Houston-based index with greater scale, flow assurance and price transparency.
Chairman of Continental Resources, Harold Hamm said: “When the Cushing, Oklahoma WTI price fell to -$38, it was a ‘wake-up call’ for the industry.
“We think a futures contract in the most interconnected market centre in the country, with a widely accepted quality spec, which settles with guaranteed delivery of crude oil is an important new alternative for the industry.”
Brent Secrest, executive vice president and chief commercial officer of Enterprise’s general partner, said: “Between Magellan and Enterprise, we offer access to virtually all of the export capacity in the Houston region.”
For more information visit www.intercontinentalexchange.com
