Intercontinental Alternate, Inc. (NYSE:ICE) immediately introduced file buying and selling exercise throughout its pure gasoline liquids (NGLs) markets as clients handle publicity to the value of NGLs.
ICE NGL futures traded at file ranges throughout the third quarter of 2023 with 718,757 tons traded, together with file common each day quantity of 11,384 tons throughout the quarter, up 66% year-over-year (y/y). Open curiosity (OI) throughout the complicated is up 50% y/y, hitting a single day file of 334,553, equal to over 650 million barrels on September 29, 2023, with OI out to December 2026.
ICE’s NGL markets embrace futures based mostly on Argus and OPIS value assessments for propane, butane, ethane and pure gasoline. These are extensively used parts in industrial, heating, and petrochemical processes, in addition to blended into automobile gas, creating a necessity for patrons all over the world to handle their publicity to the value of NGLs.
ICE is seeing file excessive participation in these markets, with new contributors from the U.S. Gulf Coast, EMEA, and Singapore now buying and selling these merchandise.
In the meantime, OI has reached file ranges in ICE’s liquid petroleum gasoline (LPG) freight futures, which contributors use to handle freight value danger on the highest LPG export routes which run from the U.S. Gulf Coast to Europe and the Far East, and from the Center East to the Far East. The U.S. is without doubt one of the world’s prime producers and main exporters of LPG, whereas Asia is without doubt one of the largest demand facilities for the gas.
OI in ICE’s LPG freight futures, that are based mostly on Baltic Alternate’s LPG assessments for the Houston to Chiba route and the Center East to Japan route, hit a file 7,177 contracts in September.
“As clients handle volatility within the value of NGLs pushed by international power dynamics, we’re seeing larger demand for NGL hedging, in addition to for LPG freight hedging to handle transportation value danger,” mentioned J.C. Kneale, Vice President, North America energy, pure gasoline and NGLs at ICE. “Hedging the U.S. Gulf Coast and Center East LPG export routes to the Far East are vital for our clients who, by means of the freight futures, are in a position to hedge their publicity throughout their total LPG portfolio from manufacturing to transport to consumption.”
ICE’s NGL and LPG freight markets are a part of ICE’s in depth power markets, which embrace the benchmarks ICE Brent, Gasoil, ICE Dubai (Platts), Henry Hub, and TTF pure gasoline, the place OI throughout the portfolio is up 13% y/y at 48.3 million contracts.