Houston Will Overtake Cushing As The Universe's Key Crude Oil Hub -- For The Next Century -- July 19, 2018

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.