Available on-demand

Midland quality WTI is now firmly at the centre of price discovery for global crude oil. It is a key component of Dated Brent and a swing barrel for European and Asian refiners who are increasingly purchasing on an Argus WTI Houston basis. In most major markets, crude oil is generally transported by water. However, the WTI Houston and Midland markets differ, with oil travelling first by pipeline in rateable transactions. The high volume of physical trades along the supply chain provides for many points of price discovery throughout the day. 

For these reasons, understanding the WTI supply chain and the drivers of its price formation is imperative for anyone buying, selling, or trading crude oil worldwide. Our expert team with CME Group specialists endeavours to capture this in the fourth episode of our WTI value chain webinar series.

The webinar will delve into the financial dynamics of West Texas Intermediate (WTI) and highlight key contracts from CME Group that serve as benchmarks for the market, including WTT, HTT, and the newly introduced XTT. In addition to the functionality of the financial contracts, the aim is to analyse the criteria behind Argus's physical assessments that underpin the growing liquidity and growth of these instruments. Participants will also learn about the practical applications of these contracts for various market players, alongside insights into market trends and contract usage.

In this webinar, you will hear:

• Overview of key contracts from CME Group: WTT, HTT, HTT Balmo, and XTT.
• Discussion on the criteria underpinning the Argus physical assessments, including physical volume and global participation.
• Examples of how different traders, such as Permian producers and domestic refiners, utilize WTT and HTT.
• Insights into the growth of open interest in key contracts from CME Group and the implications for market confidence and risk mitigation.
• How these contracts are just one component of the broader eco-system of crude trading along the US Gulf Coast.