Insight
The emergence of a global crude benchmark
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
US crude exports are poised to continue a precipitous rise in coming years – and now have a financial futures contract to price against. With the CME group launching a Houston futures contract in late 2018, an emergence of a new global crude benchmark could be imminent. In this joint paper written with CME group we explore: • The mechanics of the contract – delivery and hedging economics • Logistical connections, forecast pipeline flows and liquidity in the Houston market • Outlook for US crude exports and pricing in the global market • Houston market hub vs. other major Texas coastal export hubs
Table of contents
- US crude export dynamics: past and present
- Opening of the flood gates
- Infrastructure scramble
- Coastal pricing emergence
- Houston WTI pricing relative to other global benchmarks
- CME Group’s NYMEX Houston delivery contract specifics
- CME Auction Platform
- Anatomy of the WTI Houston market
- Hedging alternatives
- Outlook for US crude exports
- Future coastal crude infrastructure development and export hub competition
Tables and charts
This report includes the following images and tables:
- Brent-WTI differential ($/bbl)
- US crude exports by destination region (kb/d)
- US light sweet crude exports by coastal hub (kb/d)
- Texas coastal hub estimated export capacity (kb/d)
- Houston light sweet crude liquidity by source (kb/d)
- NYMEX WTI Houston Crude Oil Futures (Daily Volumes and Open Interest)
- Houston Area crude logistics and CME Group delivery points
- Table 1
- Forecast of US crude export volumes by end region (kb/d)
- Forecast of Enterprise Products Partners Houston area export terminal volumes
- Forecast of Export hub volumes (kb/d)
What's included
This report contains:
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