The World's Most Liquid Forum for Crude Oil Trading

Crude oil began futures trading on the NYMEX in 1983 and presently is the world's most actively traded commodity. As well as being the world's largest-volume futures contract trading on a physical commodity, NYMEX Division light, sweet crude oil futures contract is the world's most liquid forum for crude oil trading. Used as a principal international pricing benchmark, the light, sweet crude oil futures contract has excellent liquidity and price transparency. Light, sweet crude oils are preferred by refiners because of their low sulfur content and relatively high yields of high-value products including gasoline, diesel fuel, heating oil, and jet fuel.

Risk management and trading opportunities can be obtained through options on the futures contract. Additional risk management is offered with calendar spread options. Crack spread options make available the pricing differential of heating oil futures, crude oil futures, gasoline futures and crude oil futures, plus average price options. The contract trades in units of 1,000 barrels. The delivery point is Cushing, Oklahoma, which is also accessible to the international spot markets via pipelines. Serving the diverse needs of the physical market, the contract provides for delivery of several grades of domestic and internationally traded foreign crudes. A penultimate, financially settled crude oil (WS) contract is available for trading on the CME Globex® platform. The contract is listed for 72 months.

Designed for investment portfolios, the NYMEX miNY™ crude oil futures contract, is the equivalent of 500 barrels of crude, 50% of the size of a standard futures contract. The contract is available for trading on the CME Globex® electronic trading platform and clears through the New York Mercantile Exchange clearinghouse.

The New York Mercantile Exchange also lists for trading electronically a financially settled futures contract for Dubai crude oil; a futures contract on the differential between the light, sweet crude oil futures contract and Canadian Bow River crude at Hardisty, Alberta; and futures contracts on the differentials of the light, sweet crude oil futures contract and four domestic grades of crude oil: Light Louisiana Sweet, West Texas Intermediate-Midland, West Texas Sour, and Mars Blend.

The Brent blend futures contract is based on a light, sweet North Sea crude oil that serves as a benchmark grade and widely trades as a differential to the NYMEX Division's bellwether light, sweet crude oil futures contract. Most of the crude oil is refined in Northwest Europe, but significant volumes move to the U.S. Gulf and East Coasts. Complementing the Brent crude oil futures contract are an options contract, calendar spread options contracts, and an options contract on the Brent/West Texas Intermediate crude oil spread.

Oil Companies like Triple Diamond Energy Corporation involved in the extracting, refining, and distribution of crude oil and its valuable by-products here in the United States are driven by the demand and investments made on the commodity.