<#-- Rebranding: Header Logo--> <#-- Rebranding: Footer Logo-->
  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

    Benchmark Oils: Brent Blend, WTI and Dubai

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

    Is Now the Right Time to Buy Oil Stocks?

    Learn about the oil industry and how crude oil effects the prices of oil stock. Understand if now is a good time to purchase oil stock.
  4. Taxes

    Why Gasoline Costs What It Does

    The next time you have to dig deep into your wallet to fill your gas tank at least you'll know exactly what you're paying for.
  5. Investing

    How Low Can Oil Prices Go?

    Record low oil prices are a welcome development for consumers, but oil companies are struggling with choosing market share over profitability.
  6. Financial Advisor

    5 Steps to Making a Profit in Crude Oil Trading

    Whether you are a novice or an energy sector investing veteran, these five steps will give you consistent opportunities to profit in crude oil trading.
  7. 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.
  8. Investing

    Europe's Oil Refineries Get A Second Chance (CS, TOT)

    The European refining sector is benefiting from the drop in oil prices, but it may not last the year. Can high margins beat structural overcapacity?
Trading Center