About the AMID Oil Storage Auction
Each month, AMID auctions the storage of comingled CME WTI specified crude using Matrix’s proprietary platform.
What Is the AMID Auction?
Matrix hosts a monthly online auction for storage capacity for commingled WTI CME deliverable grade crude at the AMID oil storage facility in Cushing, Oklahoma.
The initial monthly capacity available each month will vary from 600,000 to 2.4 million barrels.
Auction participants bid on Capacity Allocation Contracts (CACs), which give the purchaser the right to store 1,000 barrels for a month.
AMID will offer CACs in increments of 1,000 barrels per contract. Each auction will have a minimum purchase requirement of 10 contracts (i.e. 10,000 barrels).
Winning bidders can take and make delivery through the CME delivery mechanism from storage acquired through the auction. They also can trade the CACs in the over-the-counter market, provided that the counterparty has signed all the documentation required by Matrix and AMID.
The auction is the first Tuesday of every month at 10 a.m. C.T.
March 17, 2020
March 13, 2020
March 10, 2020
March 10, 2020
Allows customers to manage their physical crude storage price risk
Reduces credit exposure for auction participants
Provides a transparent method to transact, establishing a market reference price
barrels of storage capacity sold
About the Cushing, Oklahoma, Oil Storage Facility
American Midstream Partners LP formed to provide critical midstream infrastructure that links producers of natural gas, crude oil, NGLs and condensate to end-use markets.
AMID’s Cushing, Oklahoma, oil storage facility is located inside the Enterprise West Cushing facility. It holds a strategic position as a major hub in oil supply. It’s a vital trans-shipment point with many intersecting pipelines, storage facilities and easy access to refiners and suppliers. Crude oil flows inbound to the facility from all directions and outbound through dozens of pipelines.
The Cushing oil storage facility serves as a delivery point for West Texas Intermediate, a blend of US light sweet crude oil streams traded on the New York Mercantile Exchange.