CME to add six Argus-based WTI Houston contracts

OREANDA-NEWS. January 20, 2016. Exchange operator CME Group will launch six new West Texas Intermediate (WTI) Houston oil futures contracts based on Argus assessments, citing increasing demand for Gulf coast crude.

"The recent lifting of the US crude oil export ban, increased market volatility, and infrastructure changes have stirred demand for Gulf Coast products," said CME executive director of energy products Peter Keavey.

The US Congress last month passed an omnibus tax and spending bill that lifted restrictions on US crude exports and President Barack Obama signed the legislation into law.

Companies including Enterprise Products Partners and NuStar Energy have exported cargoes to Europe from the Gulf coast. NuStar's cargo was sent in concert with US independent ConocoPhillips.

The six new cash-settled WTI-Houston contracts will be available for trading on 8 February on CME Globex and for submission for clearing via CME ClearPort, pending regulatory review periods.

The contracts will be listed for the current year plus three consecutive years. The contract size will be 1,000 bl.

The CME owns Nymex, home to the US benchmark WTI crude futures contract.

Argus' WTI-Houston assessment, launched in February 2015, is based on trade at Magellan's East Houston terminal.