Shale Oil May Force CME To Create New Crude Contracts

Shale Oil May Force CME To Create New Crude Contracts 600x356 Shale Oil May Force CME To Create New Crude Contracts

The Chicago Mercantile Exchange is mulling over the idea of adding two new crude futures contracts based on delivery points in Louisiana and Houston according to Bloomberg.

The Louisiana Offshore Oil Port’s facility as well as Enterprise Products Partners ECHO Terminal outside of Houston would be the basis of the new contracts and officials would even consider an East Coast crude future upon the completion of an Enbridge pipeline reversal taking oil to Montreal.

In addition, new specifications are set to be announced and put in place in 2014 for West Texas Intermediate contracts that would likely add metrics such as metal content and boiling points due to differences in quality of shale oil coming to market.

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