CME Group to launch physical WTI Houston crude oil futures contract

CME Group will offer a new West Texas Intermediate Houston crude oil futures contract with three physical delivery locations on the Enterprise Houston system. Pending regulatory review, WTI Houston oil futures will be listed with and subject to the rules of the New York Mercantile Exchange, beginning with the January 2019 contract month.

Participants will be able to make or take delivery of US light sweet crude oil at the Enterprise Crude Houston (ECHO) terminal, Enterprise Houston Ship Channel (EHSC), or Genoa Junction through the new contract.

“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,” said Peter Keavey, CME Group global head of energy. The WTI Houston contract “offers commercial customers and physical traders a way to hedge their physical price risk, enhances the transparency of US crude oil prices on the water in Houston, and reinforces the strength of our global benchmark WTI Cushing contract,” Keavey said.