U.S. Production Meets the Global Market

As record amounts of U.S. crude are moved to the coast for export, oil markets have seen trading activity shift to liquid hubs on the U.S. Gulf Coast. We designed a complete offering to bring a light sweet crude to the global market.

Purchase

Permian WTI Futures (HOU)

A benchmark for pricing U.S. crude production and exports, with a delivery point in Houston, the most active crude trading hub on the U.S. Gulf Coast. Deliverable into the Magellan East Houston terminal, barrels from the Longhorn and BridgeTex pipeline are recognized for their consistent high quality, which does not allow blending.

Store

Storage futures and auction

Short-term storage of Permian WTI barrels is available at Magellan’s East Houston Terminal upon taking delivery of the high quality crude. The ability to bid in an auction for the storage space complements the contract, providing transparent pricing and the ability to plan crude movements.

Export

Dock capacity auction

Enhance export capabilities by acquiring the right to move Permian WTI and WTL barrels directly onto the water through the dock capacity auction. The auction prices include all associated costs to move a vessel’s worth of Permian WTI at Seabrook and WTL at Galena Park for loading crude to the water.

Monthly Average WTI Quality Readings from BridgeTex & Longhorn

Month / Year API Sulfur RVP BS&W Iron Nickel Vanadium Distillation 20% Distillation 50% Distillation FBP
Oct-19 41.70 0.14 6.20 0.06 4.80 0.50 0.60 251 507 1294
Sep-19 41.80 0.13 6.40 0.06 3.20 0.50 0.40 262 519 1298
Aug-19 41.80 0.14 6.50 0.07 6.40 0.50 0.60 261 521 1300
Jul-19 41.90 0.14 6.60 0.07 6.00 0.40 0.20 252 510 1297
Jun-19 41.80 0.14 7.00 0.06 4.40 0.40 0.60 260 521 1299
May-19 42.20 0.14 7.00 0.06 4.80 0.30 0.40 252 506 1297
Apr-19 42.20 0.16 7.60 0.06 4.00 0.40 0.40 262 517 1299
Mar-19 42.30 0.15 7.80 0.07 6.50 0.30 0.40 252 510 1295
Feb-19 42.10 0.14 8.20 0.07 5.60 0.41 0.51 253 513 1295
Jan-19 42.60 0.13 8.30 0.07 5.90 0.50 0.40 253 513 1298
Dec-18 43.10 0.13 8.20 0.07 5.30 0.30 0.30 236 494 1297
Nov-18 43.00 0.12 8.20 0.07 6.10 0.40 0.40 240 496 1289
Oct-18 42.60 0.12 7.90 0.06 4.40 0.30 0.30 246 501 1295
Sep-18 42.20 0.12 7.30 0.07 - - - - - -
Aug-18 42.20 0.12 7.00 0.06 - - - - - -
Jul-18 42.20 0.13 6.90 0.07 - - - - - -
Jun-18 42.50 0.13 7.10 0.08 - - - - - -
May-18 42.70 0.13 7.50 0.08 - - - - - -
Apr-18 42.80 0.14 7.90 0.08 - - - - - -
Mar-18 42.70 0.15 8.10 0.09 - - - - - -
Feb-18 42.50 0.14 8.40 0.08 - - - - - -
Jan-18 42.90 0.13 8.60 0.08 - - - - - -
Dec-17 42.60 0.14 8.30 0.07 - - - - - -
Nov-17 42.40 0.13 8.00 0.09 - - - - - -
Oct-17 42.40 0.13 7.70 0.07 - - - - - -
Sep-17 42.50 0.16 7.20 0.06 - - - - - -

Permian WTI Futures

Spreads
Additional Inter-commodity spreads will be offered to help customers mitigate price risk between various locations and grades:
  • Permian WTI (Houston) vs ICE WTI Futures (Cushing) - price and quality differential between Mid-continent WTI vs Permian WTI Houston
  • Permian WTI (Houston) vs ICE Brent Futures - U.S. crude where it meets the water vs the global crude oil benchmark
Contract Size
Each contract represents 1,000 barrels and the price increment is $0.01 per barrel.
Product Quality
A predictable quality specification that reflects Permian WTI crude delivered directly from the Permian Basin.

Deliverable into the MEH Terminal off the Bridge Tex and Longhorn pipelines and tested at the origin and destination.

Full quality specifications are published in the Magellan Tariff for the above mentioned pipelines.