Now Live: Permian WTI vs Dubai — Where East Meets West

Fueling Global Demand

U.S crude cargoes to Asia are surging, meeting demand for U.S oil amid the Shale revolution. This dynamic has amplified the importance of arbitrage hedging and trading instruments. Leveraging the global accessibility of ICE Permian WTI futures ICE offers an inter-commodity spread between ICE Permian WTI and Dubai 1st line.

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 contract to serve as a benchmark for pricing U.S. crude production and exports, delivering a light sweet crude to the global market.

The physically delivered Permian WTI futures contract has 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.

To give participants full confidence in contract quality, Magellan provides the monthly average for their test results.

Access additional hedging and trading opportunities in a liquid, electronic marketplace

Monthly Average WTI Quality Readings
from BridgeTex & Longhorn

Month / Year API Sulfur RVP BS&W
Dec-18 43.10 0.13 8.20 0.07
Nov-18 43.00 0.12 8.20 0.07
Oct-18 42.60 0.12 7.90 0.06
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


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.