1. Introduction to Commodities
  2. Commodities: Cocoa
  3. Commodities: Coffee
  4. Commodities: Copper
  5. Commodities: Corn
  6. Commodities: Cotton
  7. Commodities: Crude Oil
  8. Commodities: Feeder Cattle
  9. Commodities: Gold
  10. Commodities: Heating Oil
  11. Commodities: Live Cattle
  12. Commodities: Lumber
  13. Commodities: Natural Gas
  14. Commodities: Oats
  15. Commodities: Orange Juice
  16. Commodities: Platinum
  17. Commodities: Rough Rice
  18. Commodities: Silver
  19. Commodities: Soybeans and Soybean Oil
  20. Commodities: Sugar
  21. Commodities: Wheat
  22. Understanding Commodities Trading

Crude oil is one of the most important commodities in the world. It’s an unrefined petroleum product composed of hydrocarbon deposits and other organic materials that can be refined to produce usable products such as gasoline, diesel and various types of petrochemicals. This section discusses contracts for West Texas Intermediate (WTI) oil, a sweet crude oil that’s less sour than Brent oil, its European counterpart. Still, both are considered light and sweet, making them ideal for refining into gasoline.

Contract Specifications

Ticker Symbol

CL (CME Globex)

Contract Size

1,000 barrels

Contract Months

All months: F, G, H, J, K, M, N, Q, U, V, X, Z

Trading Hours

CME Globex: Sunday – Friday, 6:00 p.m. – 5:00 p.m. (there’s an hour break from 5:00 to 6:00 p.m. each day)

Last Trading Day

The third business day prior to the twenty-fifth calendar day of the month preceding the delivery month.

Price Quote

U.S. dollars and cents per barrel

Tick Size

$0.01 per barrel ($10 per contract)

Production        

WTI oil is produced, refined and consumed in North America. It’s sourced from U.S. oil fields – primarily in Texas, Louisiana and North Dakota – and refined mostly in the Midwest and Gulf Coast regions. The major trading hub for TWI is Cushing, Oklahoma, which is the delivery point for crude contracts.

Price Drivers

WTI oil is considered the benchmark for oil pricing in the U.S. As such, its price is very sensitive to factors that influence the price of crude oil in general. In addition to supply and demand, the price of WTI is also driven by:

  • geopolitical and economic events
  • stockpiles at Cushing, Oklahoma
  • OPEC’s production target
  • natural disasters

 


Commodities: Feeder Cattle
Related Articles
  1. Investing

    Ending The Limits On U.S. Crude Oil Exports

    As US storage capacity reaches its limit, industry participants and their lobby groups in Washington are calling for an end to the crude oil exports ban.
  2. Investing

    Understanding Benchmark Oils: Brent Blend, WTI and Dubai

    Most crude oil prices worldwide are pegged to the influential Brent, WTI or Dubai/Oman benchmarks.
  3. Investing

    The Reasons for the Mexican-U.S. Oil Swap

    The U.S. government is getting close to a historic deal to allow U.S. producers to swap the light, sweet crude oil that is in too much supply with Mexico, in return for heavy crude.
  4. Investing

    Investing in Crude Oil Futures: The Risks and Rewards

    Learn about the risks and rewards of trading oil futures contracts. Read about a few strategies to limit the risk in trading oil futures contracts.
  5. Financial Advisor

    Learn How To Trade Crude Oil in 5 Steps

    Crude oil and energy markets are specialized venues. Here are five steps to take to build consistent profits.
  6. Investing

    Want To Start Trading Oil? Understand The Basics First

    The overall economics of oil extraction is that there is money in it - both for extraction companies and their investors.
  7. Investing

    4 Reasons Why the Price of Crude Oil Dropped

    Understand what drives the oil industry and how the price of crude oil is affected. Learn about five reasons why the price of crude oil has declined.
  8. Investing

    Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
Frequently Asked Questions
  1. Why Do Brokers Ask for Personal Information?

    There are 3 reasons a broker needs personal information: suitability, record-keeping and the law.
  2. How to Get a Company's Prospectus

    Obtaining a company's prospectus—or other financial documents—is now a simple online task.
  3. What Is a Blank-Check Company?

    A blank-check company has a business plan based on a merger or acquisition with another company.
  4. How do central banks inject money into the economy?

    Central banks use several different methods to increase (or decrease) the amount of money in the banking system. These actions ...
Trading Center