Houston To Get Its Own Crude Oil Futures As U.S. Exports Rise

Intercontinental Exchange plans to launch later this quarter a crude oil futures contract of physically delivered Permian West Texas Intermediate (WTI), deliverable in Houston, as the city has become the pricing center for U.S. oil as production and exports continue to grow.

Subject to regulatory review, the crude oil futures contract will launch on ICE Futures U.S. in the third quarter, ICE said in a statement.

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Bernstein: Oil May Jump Past $150 On Chronic Underinvestment

A supply shortfall is lurking should major oil companies continue to underinvest in exploring for new oil reserves, and this “chronic underinvestment” is setting the stage for the next super-cycle that could see oil prices soar to $150 a barrel or more, analysts at Sanford C. Bernstein & Co said on Friday.

Investors clamoring for cash returns on their investments in lieu of increased capital expenditures may soon backfire, as new oil reserves may be unable to keep up with demand, according to Bernstein analysts.

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Oil Markets Look Forward To A Quiet Hurricane Season

Last year, hurricane season disrupted a lot of oil production and refining capacity along the U.S. Gulf Coast, sending oil prices soaring. This year, however, oil bulls may be in for a disappointment as forecasts are for a quieter hurricane season.

Colorado State University recently revised its forecast for the number of named storms this season to 11 from 14, Bloomberg reports, and meteorologists from AccuWeather predicted the formation of an El Nino in August, which will reduce the likelihood of tropical storm formation. AccuWeather expects between 10 and 12 named storms this season, and between 2 and 4 major hurricanes. Colorado State University expects just one storm to develop into a major hurricane.

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