Crude oil began
on the NYMEX in 1983 and is the most heavily traded commodity.
Trading unit: Crude
trade in units of 1,000 U.S. barrels (42,000 gallons). Options: One
Division light, sweet crude oil futures contract
Trading Months: Crude
trade 30 consecutive months plus long-dated futures initially listed
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
These calendar strips are executed during open outcry trading hours.
12 consecutive months, plus three long-dated options at 18, 24, and 36
months out on a June/December cycle.
Crude Oil Futures are quoted
and cents per barrel.
(1¢) per barrel ($10 per contract).
Maximum Daily Price
Futures: Initial limits of
barrel are in place in all but the first two months and rise to $6.00
barrel if the previous day's settlement price in any back month
at the $3.00 limit. In the event of a $7.50 per barrel move in either
the first two contract months, limits on all months become $7.50 per
from the limit in place in the direction of the move following a
Options: No price limits.
Last Trading Day
Crude Oil Futures: Trading
at the close of business on the third business day prior to the 25th
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
day prior to the last business day preceding the 25th calendar day.
Options: Trading ends three
days before the underlying futures contract.
F.O.B. seller's facility,
Oklahoma, at any pipeline or storage facility with pipeline access to
Cushing storage, or Equilon Pipeline Co., by in-tank transfer, in-line
transfer, book-out, or inter-facility transfer (pumpover).
All deliveries are rateable
course of the month and must be initiated on or after the first
day and completed by the last calendar day of the delivery month.
An Alternate Delivery
available to buyers and sellers who have been matched by the Exchange
to the termination of trading in the spot month contract. If buyer and
seller agree to consummate delivery under terms different from those
in the contract specifications, they may proceed on that basis after
a notice of their intention to the Exchange.
Exchange of Futures
for, or in Connection
with, Physicals (EFP)
The commercial buyer or
exchange a futures position for a physical position of equal quantity
submitting a notice to the Exchange. EFPs may be used to either
or liquidate a futures position.
Specific domestic crudes
sulfur by weight or less, not less than 37° API gravity nor more
42° API gravity. The following domestic crude streams are
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
are deliverable: U.K. Brent and Forties, and Norwegian Oseberg Blend,
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
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
of the transaction that the inspection will occur.
Any one month/all months:
futures, but not to exceed 1,000 in the last three days of trading in
Margins are required for
or short options positions. The margin requirement for an options
will never exceed the premium.