Texas, the new center of the universe: Houston will overtake Cushing as the world's key hub.
Link here.
Rank them in order of "importance":
- ICE
- WTI
- Brent
- OPEC basket
- LLS
From oilprice.com:
Intercontinental Exchange Inc. (ICE) announced plans to launch an oil
futures with physical delivery in Houston, and the contract could
launch as soon as this quarter, subject to regulatory review. “The
Houston delivery point has become the pricing center for U.S. crude oil
production and exports, and the new flat price futures contract is
designed to serve hedging and trading opportunities in this growing
market,” ICE said in a statement.
Houston is now the “central
delivery point for U.S. crude,” with proximity to upstream production in
Texas, abundant refining and storage capacity along the Gulf Coast, and
coastal facilities that have allowed a crude oil export boom over the
past two years. The ICE Permian WTI futures contract will provide price
discovery, settlement and delivery at Magellan Midstream Partners,
L.P.’s terminal in East Houston, ICE said.
“The recent price
divergence between Cushing-based WTI and Brent is a reminder that
although Cushing is a marker for local crude fundamentals in the
midcontinent, it diverges for pricing waterborne U.S. crude,” Jeff
Barbuto, Vice President of Oil Markets at ICE, said in a statement.
Much more at the link.
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