ICE launches real-time pricing for U.S. Gulf Coast physical crude oil market

Rick Steves

“Link are one of the most active brokers of North American physical crude with unique insight into the U.S. Gulf Coast physical crude oil market. Pricing for crude oil on the water in the Gulf Coast has never been more relevant to global oil markets.”

Crude oil

Intercontinental Exchange, Inc. has launched real-time physical crude pricing from Link Data Services in cooperation with Link Crude Resources, one of the largest brokers of physical North American crude, in a move that further establishes ICE within the Gulf Coast.

Bringing additional transparency to the North American crude market, ICE is launching live calculations of the volume weighted average price for 12 grades of oil traded in the Permian; Cushing, Oklahoma; Houston and Louisiana Gulf Coast, including WTI in Midland and Houston.

Unique insight into the U.S. Gulf Coast physical crude oil market

Jeff Barbuto, Global Head of Oil Markets at ICE, said: “ICE has always been focused on bringing transparency to energy markets. Link are one of the most active brokers of North American physical crude with unique insight into the U.S. Gulf Coast physical crude oil market. Pricing for crude oil on the water in the Gulf Coast has never been more relevant to global oil markets. We’re excited to work with Link and other industry participants to bring new transparency to the market.”

Scott Nelson, Commercial Director at Link Data, commented: “Since its inception, Link’s goal has been to provide market participants with reliable price transparency for the physical crude market. With the expansion of the Brent complex to include Midland WTI, the demand for streaming North American crude pricing data has become truly global. Utilizing ICE’s global energy network, this real-time transaction information and pricing data will reach a wider and more diverse segment of the energy industry than ever before. This increased transparency, particularly as other brokers join this initiative, will further add to the utility of these instruments for the global trading community.”

Midland WTI American Gulf Coast futures contract (HOU) underpinned by over 4 million barrels per day

One of the crude grades assessed by Link Data is WTI at the Magellan East Houston terminal (also referred to as MEH-WTI). In January 2022,

ICE’s Midland WTI American Gulf Coast futures contract (HOU), a benchmark for pricing Midland quality WTI on the Gulf Coast, began trading in January 2022. The HOU contract is attracting liquidity as buyers and sellers in the Houston market start to price their barrels off HOU. The HOU contract reached a single day volume record of 12,265 contracts and an open interest record of 10,014 contracts on October 18, 2022. A total of 20,377 contracts have gone to physical delivery through the contract since January 2022, equivalent to 20 million barrels.

HOU is underpinned by over 4 million barrels per day of supply capacity from Midland into Houston and deliverable at the Magellan East Houston (MEH) and Enterprise Crude Houston (ECHO) terminals. One of the crude grades assessed by Link Data is WTI at the Magellan East Houston terminal (MEH).

Read this next

Executive Moves

CAPEX.com hires Vikas Lakhwani to join MENA business

Multi-licensed broker CAPEX.com has appointed Vikas Lakhwani as its general manager for the Gulf Cooperation Council (GCC) region.

Retail FX

Swissquote secures CySEC licence as crypto business grows

Swissquote Group, Switzerland’s provider of online trading services, has received approval from CySEC to operate as a market-making Cyprus investment firm.

Institutional FX

Moscow Exchange still enjoys solid market making volumes

The Moscow Exchange, Russia’s largest exchange group, released its monthly batch of trading volumes and metrics for November 2022 – the latest readings showed flat performance across the board for multiple segments.

Inside View

The Year-End FX Turn: To Everything There is a Season

By Paul Houston, Global Head of FX Products, CME Group

Crypto Insider

A Wrapup of zkSync x Bitrue’s “Ask Me Anything” Session

In another edition of Bitrue’s AMA on Twitter Space, Bitrue invited a special guest from the company behind the creation of zkSync, Matter Labs. Marco Cora, Head of Business Development from Matter Labs, joined the session to give listeners a rundown on what’s up with zkSync.

Technology

New Features, Upgrades, and Improvements: B2Broker Launches Big Update of Its Flagship CRM System B2Core

In a massive update for its flagship product, B2Core, B2Broker, one of the leading providers of liquidity and technology solutions for brokers and exchanges, has released new features. Enhancements in the update include the following to provide clients with more features, flexibility, and security:

Industry News

Will SEC v Ripple end come too late for crypto industry in the United States?

SEC v. Ripple Labs has entertained the digital asset industry ever since being filed in 22 December 2020. Nearly two years in, both parties have addressed the court to pursue a summary judgment in order to avoid going to trial.

Inside View

Outsourcing: The Key to Improving Your ROI

Gen Z, the second generation of digital natives, has already set out on its path to wealth creation, participating in the financial markets and inspiring Generation Alpha to follow suit. The current and upcoming generations of investors are increasingly looking for cutting-edge technology to aid their decision-making process. As investor demographics change and the markets become increasingly global, brokers need to evolve their ecosystem to stay a step ahead. This is the only way to survive the rapidly changing markets.

Crypto Insider

How did Bitcoin affect Forex in 2022? A few clues and observations

Many news segments and their buzzwords dominated 2022: inflation, war, energy and currency crises, the FTX meltdown, and one bitcoin now being priced less than the cost of mining one. With this in mind, let’s briefly examine how crypto and Forex have bounced off each other in 2022.

<