Matrix Global Holdings to build stocks of low-sulphur crude oil

Matrix Global Holdings is due to set up an oil storage futures contract for low-sulphur crude oil that will enable users to build up supplies for export cargoes.

The company’s Chief Executive, Richard Redoglia told Reuters the product will be stored at the Clovelly, Louisiana, terminal operated at the Louisiana Offshore Oil Port (LOOP).

The LOOP is the only U.S. Gulf Coast port that can handle VLCC tankers that are capable of transporting up to two million barrels of oil. The facility will begin exporting crude in early 2018 after years of being used only for imports.

Richard said: “We are looking at the ability to do exactly what we’ve done with the medium sour contract to think about a storage futures contract for sweet, which will allow Asian buyers to effectively accumulate their own barrels and move it on a VLCC.”

U.S. crude exports are set to increase from their current levels of around one million barrels per day, due to increased production from shale oil basins.

Matrix Global is also investing in a facility with 6.2 million barrels of storage at Cushing, Oklahoma, to take advantage of upcoming Canadian crude supplies that will be delivered by the Keystone XL pipeline.

Richard said: “The crude has yet to be determined, we will figure out what should we put into those tanks.”

For more information visit www.matrixmarkets.com

Source Reuters

1st Oct 2017