To calculate the delivered price of WTI Houston and WCS Houston crude to China, Argus takes the daily volume-weighted average (VWA) of all deals done during the entire trading day for each grade, adds export terminal costs and the daily freight rate for the US Gulf coast-to-China route for Suezmax (130,000t) cargoes and publishes the delivered price of these two grades in the Asia-Pacific section of the Argus Crude report. The Argus WTI Houston price can easily be hedged because it is traded on the CME and Ice exchanges and is linked to Nymex WTI futures. There is no paper trade on WCS Houston.
The expansion and development of export capacity on the US Gulf coast, especially the planned completion next year of infrastructure linked to the Magellan East Houston terminal where WTI Houston is priced, will accelerate these flows.
“The US Gulf coast is now an important region for crude price discovery. The new Argus WTI Houston and WCS Houston delivered to China assessments respond to the market need for a price reference for these deals, linking unconventional US shale and Canadian oil sands production to the international seaborne crude market,” Argus Media executive chairman and publisher Adrian Binks said.
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About Argus Media
Argus is an independent media organisation with 750 full time staff. It is headquartered in London and has offices in each of the world’s principal commodity centres. Its main activities comprise publishing market reports containing price assessments, market commentary and news, and business intelligence reports that analyse market and industry trends.
Argus is a leading provider of data on prices and fundamentals, news, analysis, consultancy services and conferences for the global crude, oil products, natural gas, electricity, coal, emissions, bioenergy, fertilizer, petrochemical, metals and transportation industries. Data provided by Argus are widely used for indexation of physical trade. Companies, governments and international agencies use Argus information for analysis and planning purposes.
Argus has 21 offices globally, including London, Houston, Washington, New York, Calgary, Rio de Janeiro, Singapore, Dubai, Beijing, Tokyo, Sydney, Moscow, Astana and other key centres of the commodity industries. Argus was founded in 1970 and is a privately held UK-registered company.
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