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.

U.S. crude for a global market

What is the futures contract?

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).

How much storage is available?

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.*

*Subject to the futures Contract and Magellan‘s terms and conditions

What is the difference between the storage auction and 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.

Describe the benefit of the auction

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.

How do I participate in the auction?

The auction is available via WebICE and will be held on the first Tuesday of every month. You need a futures account with limits for HOS in order to participate in the auction.

  • 1 lot = 1,000 barrels
  • Size of storage correlates with size of HOU

How do I trade the futures?

The storage futures market will be available on WebICE or any other approved ISV. The contract is designated as storage capacity in the form of a CAC, cleared on ICE Clear Europe with six months forward listed.

  • Product code: HOS
  • 1 lot = 1,000 barrels
  • Size of storage correlates with size of HOU