Crude oil began
futures trading on the NYMEX in 1983 and is the most heavily traded
Trading unit: Crude
trade in units of 1,000 U.S. barrels (42,000 gallons). Options: One
NYMEX Division light, sweet crude oil futures contract
Trading Months: Crude
trade 30 consecutive months plus long-dated futures initially listed
36, 48, 60, 72, and 84 months prior to delivery. Additionally, trading
can be executed at an average differential to the previous day’s
settlement prices for periods of two to 30 consecutive months in a
single transaction. These calendar strips are executed during open
outcry trading hours. Options: 12 consecutive months, plus three
long-dated options at 18, 24, and 36 months out on a June/December
Crude Oil Futures are quoted
in dollars and cents per barrel.
Fluctuation: $0.01 (1¢) per barrel ($10 per contract).
Maximum Daily Price
Futures: Initial limits of
$3.00 per barrel are in place in all but the first two months and rise
to $6.00 per barrel if the previous day's settlement price in any
back month is at the $3.00 limit. In the event of a $7.50 per barrel
move in either of the first two contract months, limits on all months
become $7.50 per barrel from the limit in place in the direction of the
move following a one-hour trading halt.
Options: No price limits.
Last Trading Day
Crude Oil Futures: Trading
terminates at the close of business on the third business day prior to
the 25th calendar day of the month preceding the delivery month. If the
25th calendar day of the month is a non-business day, trading shall
cease on the third business day prior to the last business day
preceding the 25th calendar day.
Options: Trading ends three
business days before the underlying futures contract.
F.O.B. seller's facility,
Cushing, Oklahoma, at any pipeline or storage facility with pipeline
access to TEPPCO, Cushing storage, or Equilon Pipeline Co., by in-tank
transfer, in-line transfer, book-out, or inter-facility transfer
All deliveries are rateable
over the course of the month and must be initiated on or after the
first calendar day and completed by the last calendar day of the
An Alternate Delivery
Procedure is available to buyers and sellers who have been matched by
the Exchange subsequent to the termination of trading in the spot month
contract. If buyer and seller agree to consummate delivery under terms
different from those prescribed in the contract specifications, they
may proceed on that basis after submitting a notice of their intention
to the Exchange.
Exchange of Futures
for, or in Connection with, Physicals (EFP)
The commercial buyer or
seller may exchange a futures position for a physical position of equal
quantity by submitting a notice to the Exchange. EFPs may be used to
either initiate or liquidate a futures position.
Specific domestic crudes
with 0.42% sulfur by weight or less, not less than 37° API gravity nor
more than 42° API gravity. The following domestic crude streams are
deliverable: West Texas Intermediate, Low Sweet Mix, New Mexican Sweet,
North Texas Sweet, Oklahoma Sweet, South Texas Sweet.
Specific foreign crudes
of not less than 34° API nor more than 42° API. The following foreign
streams are deliverable: U.K. Brent and Forties, and Norwegian Oseberg
Blend, for which the seller shall receive a 30¢-per-barrel discount
below the final settlement price; Nigerian Bonny Light and Colombian
Cusiana are delivered at 15¢ premiums; and Nigerian Qua Iboe is
delivered at a 5¢ premium.
Inspection shall be
conducted in accordance with pipeline practices. A buyer or seller may
appoint an inspector to inspect the quality of oil delivered. However,
the buyer or seller who requests the inspection will bear its costs and
will notify the other party of the transaction that the inspection will
Any one month/all months:
20,000 net futures, but not to exceed 1,000 in the last three days of
trading in the spot month.
Margins are required for
open futures or short options positions. The margin requirement for an
options purchaser will never exceed the premium.