New CME Products
CME Group has announced that they will offer a new WTI Houston Crude Oil futures contract, with three physical delivery locations on the Enterprise Houston system, pending regulatory review. WTI Houston Crude Oil futures will be listed with and subject to the rules of NYMEX, starting with the January 2019 contract month. The new contract expands CME’s already large suite of crude oil futures and options and will complement the global benchmark NYMEX WTI Light Sweet Crude Oil futures.
“Houston’s importance as a trading and export hub for physical crude oil from Cushing and the Permian Basin continues to evolve due to the shale oil revolution and repeal of the crude oil export ban,” says Peter Keavey, CME Group’s Global Head of Energy. “The WTI Houston contract offer commercial customers and physical traders a way to hedge their physical price risk, enhances the transparency of U.S. crude oil prices on the water in Houston and reinforces the strength of our global benchmark WTI Cushing contract. We believe the network of domestic users and location close to export facilities will ensure this contract provides transparent price discovery and risk transfer in the growing Houston region.”
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