What are Crude Oil Futures?

Crude Oil Commodity Futures Information
Futures Trading Contracts have a defined set of specifications. With Crude Oil the contract represents 1,000 barrels of WTI with standardized delivery dates set in the future. Contracts are available for each month of the current year and go out as far as 5 years in the future. Additionally there are June and December expirations for years 6-9 out. Each month’s expiration is set in the preceding month for the 3rd business day prior to the 25th calendar day of the month.

Crude Oil

WTI Crude Oil

The price of a crude oil contract are quoted in US Dollars and Cents per barrel and the value of the contract can be calculated by taking the current futures quote and multiplying this by the size of the contract which is 1,000 barrels. As an example a crude oil price of 95.52 would be $95.52. Multiply the futures price by 1,000 barrels (95.52 x 1,000) and you will come up with a cash value of $95,520 for the crude futures contract. The market trades in standardized price movements of 1 cent which is referred to in the trading industry as 1 tick. The minimum value per tick is then $10 per crude oil futures contract.

The majority of traders do not put up the full cash value of the futures contract to trade. Exchanges and Futures Brokers allow customers to trade a futures contract by posting a fraction of the cash value of a contract. This is referred to as posting margin and is trading using leverage. Margin rates do change and you can reference them online. A very important note that using leverage to trade has risk associated with it and must be understood before trading with real money. Referencing our example of the price of crude oil above and the cash value of the contract a trader could trade a crude oil futures contract with $4,000 in margin (Day Trading margins could be less). With a cash value of approximately 95,000 you can see that you only need to post a margin that is a little more than 4% of the actual value of the futures contract.

Light Sweet Crude Contract Specifications Commodity Group Energy Futures

Exchange Contract is Traded CME Globex, CME ClearPort, Open Outcry (New York)

Hours Traded (New York Time and GMT)

CME Globex Sun-Fri 6 p.m. - 5:15 p.m.

CME ClearPort Sun- Fri 6 p.m. - 5:15 p.m.

Pit Open Outcry Mon-Fri 9:00 a.m. – 2::30 p.m.

Contract size 1000 barrels

Price Quotation US Dollars and cents per barrel

Minimum Fluctuation $0.01

Daily Limit

Initial Price Fluctuation Limits for All Contract Months. At the commencement of each trading day, there shall be price fluctuation limits in effect for each contract month of this futures contract of $10.00 per barrel above or below the previous day's settlement price for such contract month

Months Traded

Every month for 5 years out. Plus June and Dec years 6-9

Termination of Trading

3rd business day prior to the 25th calendar day of the preceding Month

Delivery Period

(A) Delivery shall take place no earlier than the first calendar day of the delivery month and no later than the last calendar day of the delivery month.

(B) It is the short's obligation to ensure that its crude oil receipts, including each specific foreign crude oil stream, if applicable, are available to begin flowing ratably in Cushing, Oklahoma by the first day of the delivery month, in accord with generally accepted pipeline scheduling practices.

(C) Transfer of title-The seller shall give the buyer pipeline ticket, any other quantitative certificates and all appropriate documents upon receipt of payment.

The seller shall provide preliminary confirmation of title transfer at the time of delivery by telex or other appropriate form of documentation.

Settlement Type Physical

Grade and Quality Specifications Must be WTI Crude Oil

sources CMEGroup, US Department of Energy and Back Bay Futures

Back Bay Futures is a Futures broker who specializes in Alternative Investments such as managed futures and forex. Pit and Electronic institutional option execution as well as self-directed and broker assisted accounts are also available.

There is a substantial risk of loss in trading futures, options and FX. Please read our full terms and disclaimers for more details of risk associated with Commodities interests.

Disclaimer: Trading in commodity interests is a challenging opportunity which involves considerable risk. Commodity Interests include; Futures, options, cash currencies and other leveraged transaction products. The valuation of futures, options, cash currencies and other leveraged transaction products may fluctuate and as a result clients may lose more than the amount originally invested and may also have to pay more later. Therefore, before deciding to participate you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney or accountant as to the appropriateness of an investment in margin trading and leverage transaction products is recommended. Back Bay Futures is a registered branch office of Back Bay FX Services, LLC - NFA member (0388617).

Intermediate 0 Users Collected

Post Topics

Post Details

Market Merchandise: Commodity Futures, Commodities, Futures,
Players: Trader,
Styles: Trading, Momentum Trading, Position Trading,
Strategies: Risk Arbitrage, Volatility Arbitrage, Directional,

Download Our Free eBook

25 Stock Market Indicators To Know

And subscribe to our MarketHeist Guides newsletter!

Comments

Comments are closed.

Login to Comment

Free Brokers, Software, & Tools to Start.

Start with Brokers that have free accounts and professional grade software. Software that's the same whether you're practicing with fake money or trading real money.

Submit a Service

Profile Photo

TD Ameritrade Online Broker

With free thinkorswim, Trade Architect, & mobile software. Practice with virtual money. Invest and trade in stocks, ETFs, mutual funds, bonds, options, futures, and forex. No minimum and no maintenance fees. $0 to start.

☆ Collect Launch

Profile Photo

tradeMONSTER Online Broker

Free browser & mobile software. Easy to use technology including strategySeek and paperTRADE. Invest and trade in stocks, ETFs, mutual funds, bonds, and options. No minimum and no maintenance fees. $0 to start.

☆ Collect Launch

Profile Photo

optionsXpress Online Broker

optionsXpress offers an innovative suite of online brokerage services for investor education, strategy evaluation and trade execution. No minimum requirements.

☆ Collect Launch

Learn The Business. Take A Course.

What is the market and how it works
Finding Opportunities (with Technical Analysis & Fundamental Analysis)
Planning & Safety (with strategies to make smart decisions.)
Plan Execution: Buying & Selling

Submit a Service

Learn Stocks

Profile Photo

Investools Investing Foundations Program

Get trained in the foundations of the stock market and stock trading with two courses, a wealth of easy-to-use tools, and top-tier coaching support, in the program that helps you start managing your own portfolio. In the Investing Foundation Program, you’ll enjoy live and online workshops that can help you quickly overcome fears and learn […]

☆ Collect Launch

Learn Options

Profile Photo

OptionsAnimal Apprentice Options Education Program

Description Build your knowledge from the ground up. Understand key concepts and learn the basic spread trades that will give you a foundation to trade successfully. Learn how to properly structure a trade using the Protective Put, Covered Call, Collar Trade as well as applying the Straddle/Strangle. Trade Adjustment Spread Trades OptionsAnimal Trader Professional Program […]

☆ Collect Launch

Learn Futures

Profile Photo

OpenTrader Professional Training Program

The industry’s only training program built by professional full-time traders. You used to have to get hired by a professional trading firm to get world-class training. Not anymore. If you’ve been a losing trader, getting beaten down by the market again and again, low on confidence and full of doubt, things are about to change […]

☆ Collect Launch

On-The-Job Training. Earn While Learning.

Follow Live Trades, Step By Step
Detailed Trade and Market Analysis
Explanations of Strategies and Tactics
Questions Answered in Webcasts & Chatrooms
Learn by Copying The Pros At Every Step

Submit a Service

Learn Stocks

Profile Photo

Mish’s Market Minute Premium Stock Picks Video Subscription

Live-in-the-market instruction showing you how to trade in the afternoon the choice stock and ETF picks vetted by MarketGauge’s tools earlier in the day. Video up to 15 minutes: 4 times a week (M/T/W/Th) by 1:30PM ET $124.97/month Includes ETF Monitor & Nuggets List Private real-time Twitter Alerts 2 week FREE trial Learn as Mish: […]

☆ Collect Launch

Learn Options

Profile Photo

stockguy22 Live Trading & Education for Part Time Traders

What You’ll Get Learn stocks and options trading at your own pace from a group of full time traders dedicated to teaching through live trading, education, and mentoring.  See how trading is done methodologically as an occupation on a daily basis, from beginning to end.  Start with the daily in-depth analysis of stocks, the overall […]

☆ Collect Launch

Learn Futures

Profile Photo

Emini Wizard Trading System & Live Trading Chat Room

Thanks for considering The Emini Wizard System: This system is available for purchase for people who want to make a one time investment for the entire program. You get: Access to the Member’s website Spreadsheets Common plays Special plays Trade logic explained Chart patterns Chart settings we prefer Separate active chat area (30 days free […]

☆ Collect Launch

Some Partners We've Worked With

  • Download Our Free eBook

    25 Stock Market Indicators To Know

    And subscribe to our MarketHeist Guides newsletter!