NYMEX Crude Oil Futures Live Chart
NYMEX Crude Oil Technical Analysis
About Crude Oil Futures
What is Crude Oil Futures?
Crude Oil futures are standardized, exchange-traded contracts. In which the contract buyer agrees to take delivery, from the seller, a specific amount of crude oil (eg. 1000 barrels) at a determined price on a future delivery date.
|Contract Unit||1,000 barrels|
|Price Quotation||U.S. Dollars and Cents per Barrel|
|Minimum Price Fluctuation||$0.01 per Barrel|
|Product Code||CME Globex: CL CME ClearPort: CL Clearing: CL TAS: CLT TAM: CLS|
How to invest using Crude Oil Futures?
Crude oil futures are futures contracts in which consumers and traders of oil organize and agree to deliver specific quantities of physical crude oil on a specified date in the future. The benchmark futures contract for crude oil in the U.S. involves West Texas Intermediate, a particular grade of oil that has fairly low density and sulfur content that makes it relatively easy to refine. It has historically traded on the New York Mercantile Exchange, and therefore many traders refer to the contracts as NYMEX WTI crude oil futures.
While every day futures contract prices change, a seller obtains financial credit when futures prices go down, offsetting the drop in oil’s market price. For instance, if a contract falls from $60 per barrel to $59, then the seller will get a $1,000 credit, corresponding to the $1 decline multiplied by the 1,000 barrels covered by the contract. Conversely, if the contract rises from $60 to $61, the seller takes a $1,000 loss, offsetting the eventual gain the seller will get in future by having a higher price.
Crude Oil Futures are an integral part of how the energy industry works. The futures markets can be a risky place for individual investors, but energy companies that use futures well can often boost their profits or avoid losses that their peers end up suffering.
Why Trade NYMEX WTI Futures?
Crude oil markets offer opportunities in nearly all market conditions but can be highly volatile. Several factors impact prices, directly (pipeline changes) or on a macroeconomic level (i.e., economic health, weather), making price risk management is critical. NYMEX WTI futures deal direct exposure to the oil market. A key advantage over other ways to trade, whether you’re looking to hedge risk or speculate on where oil prices are headed. There are Nearly 1.2 million contracts traded daily, with 2 million+ in open interest.
WTI is the go-to measure of world’s oil prices due to the rise in U.S. production, Asian usage and liftoff of U.S. export ban. It Controls a large contract value with a small amount of capital. Used properly, it’s a powerful way to increase capital efficiency and exposure.
NYMEX WTI is closely connected to the spot market, reducing costs. Trade with other NYMEX oil contracts for significant savings and precise exposure. Trade using the CLOB, blocks, cleared-only transactions and EFRPs. Spread NYMEX WTI with other liquid NYMEX energy benchmarks to easily capture essential price relationships. And also get cross-margin savings, operational efficiencies, and lower costs.