<article><p class="lead">A new marker for US light sweet crude at the US Gulf coast is gaining momentum in its inaugural month from liquidity captured at a major Houston terminal.</p><p>Reported trade month volume in the <i>Argus</i> <a href="https://www.argusmedia.com/-/media/Files/brochures-and-downloads/argus-american-gulf-coast-select-external-faq.ashx?la=en&amp;hash=764229210D7D0B3B97681FC9988ADFE108B01F19">AGS Marker</a> totaled 477,906 b/d in the August US trade month, which ended 24 July, according to preliminary trade data. Crude traded at Magellan's East Houston terminal accounted for more than 99pc of that volume at 474,293 b/d. </p><p>The remaining AGS volume reported for August was made up of WTI deals at the Echo terminal in Houston, Texas, in the financial but physically deliverable market. </p><p>The <i>Argus</i> AGS Marker was <a href="http://direct.argusmedia.com/newsandanalysis/article/2118084">launched 26 June</a> as a daily outright assessment for Midland-quality WTI crude across seven terminals at the US Gulf coast, providing market participants with an alternative benchmark that reflects light crude value at the US Gulf coast.</p><p>The new index is the first of its kind, including both waterborne and pipeline WTI transactions at Magellan's east Houston terminal, Echo terminal, Speed and Genoa junctions, the Enterprise Hydrocarbon Terminal (EHT) on the Houston Ship Channel, Seabrook and Texas City. </p><p>The list of locations may eventually be expanded to include other US Gulf coast crude terminals outside of the Houston area.</p><p>Volume reported into the Argus Sour Crude Index (ASCI), which was launched in 2006 as a volume-weighted average of medium sour grades Mars, Poseidon and Southern Green Canyon (SGC), surpassed AGS volume by just 4.7pc at 500,180 b/d during August trade. </p><p>ASCI volume has been drawing support from an <a href="http://direct.argusmedia.com/newsandanalysis/article/2121130">increase in sour crude export interest</a>relative to light sweets during <a href="http://direct.argusmedia.com/newsandanalysis/article/2125982">difficult arbitrage economics</a> for the latter. Mars — the most frequently exported sour grade at the US Gulf coast — comprised about 74.2pc of total August ASCI volume at 371,373 b/d, a nearly 17pc increase from the 317,599 b/d of Mars reported trading during the July trade month. </p><p>AGS trade volume is poised to eclipse ASCI with the potential uptick of spot waterborne activity for light sweet crudes at the US Gulf coast when margins improve for sweets over sours. </p><p>The <i>Argus</i> AGS Marker flipped to an 18¢/bl premium versus ASCI on the first day of the September trade month yesterday, compared to an average 9¢/bl discount during the August trade month. </p><p class="bylines"><i>By Amanda Hilow</i></p></article>
