Physically delivered storage futures
Take a deeper dive of the contract that’s providing storage of Permian WTI at Magellan East Houston, supporting demand for a high quality U.S. crude in a global market.
The futures contract (HOS) will expire into a Capacity Allocation Contract (CAC) for short-term storage of Permian WTI crude barrels at Magellan’s East Houston Terminal (MEH).
500,000 bbls of storage is segregated by Magellan for delivery for the first six months, 1MM bbls available thereafter. Long-term storage holders can deliver storage capacity into the futures contract.*
Held at 10:30am EST on the first Tuesday of each month Magellan makes a variable amount of storage available for bidding. The winning bids of the auction will result in a HOS futures position.
Ability for participants to place a bid that reflects their direct interest in the market. The auction provides transparent pricing, the opportunity to plan crude movements and more availability to hedge.
*Subject to the futures Contract and Magellan‘s terms and conditions