LOOP Sour Storage
As global crude oil supply and demand dynamics continue to shift, LOOP LLC remains focused on meeting the risk management needs of our customers. Together with the CME Group (www.cmegroup.com/energy) and Matrix Markets (www.matrixmarkets.com), LOOP launched the world’s first crude oil storage futures contract in March 2015. LOOP Crude Oil Storage futures (LPS) help customers manage their physical crude storage price risk, while enhancing price transparency of, and access to, short-term (monthly) storage capacity along the U.S. Gulf Coast.
The storage-based futures contract provides a unique logistical solution in the form of an exchange-traded, physically deliverable futures contract for the crude oil market. This contract enhances short-term crude oil storage price transparency and provides customers and industry participants with new opportunities for risk management. This is an important tool to help manage delivery of crude oil the U.S. Gulf Coast market at LOOP’s Clovelly Hub. This contract also enhances the liquidity of the existing LOOP Gulf Coast Sour Crude Oil Futures (MB) contract, which is physically deliverable at LOOP.
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This analysis was complete September 2017, from a composite sample of deliveries made from the LOOP Sour cavern during the 3rd quarter of 2017.
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