Light Crude Oil Futures

Current Light Crude Oil Futures | Futures Prices

Light crude oil futures trading, dates back to the 1970's. Energy markets are relatively new compared to the more established commodities market. These took birth mainly to control the intrinsic volatile nature of the commodities market, and risk management. In addition, light crude oil futures trading is comparatively like apples to apples, to its predecessors that exist in the commodities market, they all rely on supply and demand.

Crude Oil Futures Trading

Generally speaking, crude oil is always in high demand, because it is interwoven in every aspect of our lives, make-up, gasoline, plastics, detergent, medicine, etc. Its relative nature to the support of human society is key to meeting a high supply and demand. Before making a move in checkers, and jumping over your opponents, and being crowned king, understanding the formation of crude oil truly is the course of wisdom.

Light crude oil is determined by its American Petroleum Institute (API) gravity. Simply, the API weighs to see how heavy or light petroleum liquid compares to water. Consequently, if petroleum liquid is above 10, it is lighter than water and will float, and conversely. Crude oil is classified in four weights: light, medium, heavy and extra heavy. LCO, weight has a high API gravity of 31.3 (less than 870 km/m3). This is significant, the higher the API number (40 to 45), the more valuable it is for refineries to trade, which leads to greater profits for the initial investment. Moreover, a useful Light crude oil creates a higher demand, which propels more futures contracts, and pushes for more trade. However, if crude oil reaches an API surpassing 45, molecularly it breaks down and is of use to anyone. As you begin to move your pieces in place for trading, there are two benchmarks for trading light crude oil: Brent Blend and West Texas Intermediate.

Brent Blend oils and West Texas Intermediate (North America) are both sweet crude oils. Brent Blend (European) light crude futures represent half of the traded light crude oil from the North Sea. Briefly, Brent is an acronym for the five layers of formation in the field of oil: Broom, Rannoch, Etive, Ness and Tarbert. Brent Blend Oils can be traded on the Intercontinental Exchange (ICE) and the New York Mercantile Exchange (NYMEX). The symbol for trading on ICE is NSEA-M. This sweet Light crude oil originally traded in London, on the International Petroleum Exchange (IPE). Every futures contract equates to 1000 barrels and is quoted in U.S. Dollars.

Why Trade Crude Oil Futures?

Taking a chance to trade crude oil futures can potentially be a great investment, when done correctly and after conducting proper research. As the price of crude oil can see substantial fluctuations in a short period of time, your trading account can increase in value or lose value rather quickly while being able to speculate both on crude oil prices going down or crude oil prices going down. As oil futures have high volumes of trading occurring every day, it is one of the most liquid future on the market. Crude oil trading also allows many investors to invest much less than what is traditionally needed when compared to the stock market. The use of leverage allows traders the possibility of large profits in short time and at the same time large losses in short time. Crude Oil is affected by many news, supply and demand, alternative energies, geo political situations and more. In addition, investors who are new to trading crude oil futures can typically get a good grasp on the basics process as long as they properly research and establish a strong strategy to follow during trading and they can practice it using a demo account with live prices. It is advisable to connect with a futures broker prior to investing in crude oil futures, as a broker can provide guidance during the process of learning how to trade and hopefully become profitable.

Overall, trading Light crude oil is a great way to diversify your portfolio and leverage against volatile commodities such as gold and silver. Whether trading the Brent or West Texas sweet oil, an avid study of market makeup, is vital to comprehend the scope and nature of light crude oil. All light crude oil posses an expiry dates every month of the year. This constantly applies pressure to traders, to trade, quickly, but sagely, in order to preserve the longevity of their product, yet still not be left with a stockpile of product. All LCO's can be found on the CME group, CME clear point and CME Globex. With Light crude oil, the variance in price, is $.01, in short a stabilizer, in a truly unstable marketPractice paper trading before testing newly acquired skills in trading, learn the rules first, master how everything moves and jump your way to a solid trading future.

As one of the first online commodity brokers in the industry, Cannon Trading has helped clients all over the world achieve their trading goals. We have been in business since 1988, and have received several customer service awards, and consistently maintained good standing with the NFA and CFTC.

Our professional commodities brokers will work with you to understand your specific trading style and requirements, and provide you the essential advice and information you need to thrive in this highly lucrative market.

Cannon Trading's Broker-assisted Trading solution provides traders who are new to the field with the essential advice and tools they need to accelerate their understanding of the Light crude oil futures market.

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

The commodities market has grown over the years, with new markets surfacing as the industry grows. Among these new changes includes energy markets, which have begun taking shape over the decades.

Energies futures markets are relatively new compared to the more established commodities markets. With many different types of energies to invest in, traders have started to tap into the ever-growing market.

Among the many different types of energy futures, there is a big market for light crude oil. While not the newest energy futures, light crude oil trading has been a staple in the industry for years.

In July of 2021, the market had the highest prices it had seen since 2014, that along with the launch of MICRO crude oil futures made the contract an interesting option for traders of all types and skill levels.

About Light Crude Oil Futures

Light crude oil futures trading dates back to the 1970s. This type of futures trading took off to offer a sense of control in the commodities market.

Due to the volatile nature of the commodities market, many traders were looking for a sense of risk management in energy futures. Like other energy futures, light crude oil futures rely on supply and demand, which is a significant source of market fluctuation.

The market peaked for the first time since 2014, with light sweet crude oil futures hitting around $76.98. While prices have fallen significantly since the beginning of autumn, they are slowly rising.

The higher volatility in the market is an attribute many traders look for. While volatility is a two edge sword ( both higher risk and possible larger reward)

For clients that don't know where to start, don't worry! Our team of experienced brokers is here to help clients with any questions and concerns they may have regarding this type of trading.

The Crude Oil Futures Market

Crude oil is a commodity that will should be in high-demand since it is a large part of modern life. Many things that people utilize daily include crude oil, from gasoline to makeup.

Here are just a few of the products that utilize this type of energy:

Detergents

Plastics

Medicines

Makeup

Gasoline

Motor Oil

And more

Most of our nonrenewable energy comes from crude oil, making it a high-demand future to begin trading. Since it is a significant part of human society, we expect crude oil to stay in demand.

There are many factors affecting crude oil prices: Supply & Demand, News from the Middle East, disruption of supply channels, geopolitical events, OPEC meetings and more.

Learning the crude oils market dynamic can help clients make the most informed decisions regarding their investments. Since the market has a significant basis in supply and demand, it is best to understand its ebb and flow before making the first investment.

Our brokers can help get a trader set up to begin trading futures as soon as possible. At Cannon Trading, our skilled team can help clients from all different backgrounds navigate the market. Our professional input and top-tier platforms can give clients the results to analyze and learn the industry.

What is Light Crude Oil?

The American Petroleum Institute (API) determines the gravity of the petroleum liquid to provide a grade for it.

They compare the weight and density of petroleum to water, which gives it an API gravity. If petroleum liquid is above a rating of 10, it will float in the water. If it is below a rating of 10, then it will sink.

For this reason, crude oil has four different weights, which we've broken down below:

Light

Medium

Heavy

Extra-Heavy

How Does Light Crude Oil Stack Up?

Light Crude Oil has an average API gravity of 31.3, which makes it relatively valuable to collectors. Typically, the higher the API gravity, the more valuable the crude oil is to investors. The most valuable crude oils have an API gravity of 40 to 45, making them more desirable for refineries to trade.

High-value Light Crude Oil pushes more people to trade, which is why most people prefer trading units with API gravity of 40 - 45 and above.

Once the API gravity goes beyond 45, the oil begins to break down, which means the market moves quickly to prevent this process from occurring.

The Two Benchmarks for Trading Light Crude Oils

When trading Light Crude Oils, there are two critical benchmarks to remember. They are listed below:

Brent Blend

West Texas Intermediate

We've further broken down these types below:

Brent Blend

Brent Blend represents European light crude futures. This benchmark represents half of the traded light crude oil from the North Sea.

Brent is an acronym for the five layers in the field of oil:

Broom

Rannoch

Etive

Ness

Tarbert

Traders can exchange Brent Blend on the Intercontinental Exchange (ICE) or the New York Mercantile Exchange (NYMEX). Every futures contract equates to 1000 barrels in US dollars.

West Texas Intermediate

This benchmark represents North American light sweet crude oils. Clients can trade these futures on the Intercontinental Exchange (ICE) or the New York Mercantile Exchange (NYMEX).

Why Trade Crude Oil Futures?

Traders will trade crude oil as either speculators or hedgers. Speculators will try to profit while taking a risk from moves as short as seconds to trades lasting months. Hedgers will try to mitigate risk either as producer (refineries) or consumer ( airline company)( .For the speculator the higher traded volume = liquidity, higher than average volatility make crude oil futures and MICRO crude oil futures ( 1/10th the size). We recommend understanding fluctuations and market movements before investing in crude oil.

The price of crude oil can see substantial fluctuations quickly, which means that a traders' account can see extreme increases and decreases in value. As a high volume of traders procure oil futures every day, it is primarily considered one of the most liquid futures on the market.

Crude Oil’s Market is Different

Crude oil trading allows investors to spend a lot less than other futures and stocks. This cost allows traders to make faster returns if proper research occurs.

All of the following impact crude oil:

Alternative energies

Supply and demand

News

Geopolitical situations

And more

Investors who are new to trading can grasp the process with proper research and strategize. At Cannon Trading, we recommend utilizing a demo account with live prices to get a good idea of the state of the market.

Our team can also help guide traders through the process. Cannon Trading's experienced brokers can provide insight into the market while helping traders to navigate it.

Diversify Your Trading With Light Crude Oil Trading

Light Sweet Crude Oil Trading can help clients to diversify their market interests. It also provides leverage against volatile commodities, such as gold and silver.

Whether trading the Brent or West Texas Sweet Oil, an avid study of market makeup is vital to comprehend the scope and nature of Light Crude Oil.

All Light Crude Oils possess an expiry date, which a person should know before investing. These expiration dates occur every month of the year, so they constantly apply pressure to traders.

To preserve the longevity of their futures, traders must trade quickly and knowledgeably. An avid trader of Light Crude Oils does not want to have a stockpile of products, so they must act quickly to make and sell their investments.

Traders can find all Light Crude Oils on the following:

CME Group

CME Clear Point

CME Globex

With Light Crude Oil, variable prices can create a volatile market, even if they only vary by a cent or less. Our brokers recommend practicing trading in other markets before jumping into Light Crude Oils.

This market should not be the first one in which people attempt to trade, as it can seem highly turbulent and unstable.

Getting Started With Cannon Trading

Our experienced team of brokers is one of the first in the industry. We opened our doors in 1988, which has led us to network with various traders across the nation and the world.

Since we opened, we have received several customer service awards and have consistently maintained good standing with the NFA and CFTC.

At Cannon Trading, we have the tools traders need to make informed decisions before investing in the futures market.

We provide access to cutting-edge software and programs that put our traders at the forefront of the industry. We have significant knowledge of the current state of light sweet oil futures, and we want to help our clients take full advantage of the growing industry.

Cannon Trading's experienced brokers can help clients learn more about oil futures, offering insight into the overall market, as well.

We work with traders from many different backgrounds, including:

Broker-assisted traders

Day traders

Diversified traders

Institutions

Professional traders

And more

Whether you're a beginning trader or an experienced one, our brokers can help you navigate the market. We have direct experience with the market so that we can help our clients best navigate the market.

We also provide them with the tools they need to make the most of the volatile futures market.

Contact Cannon Trading

Our professional commodities brokers will work with you to understand your specific trading style and requirements and provide you the essential advice and information you need to thrive in this highly lucrative market.

Cannon Trading's Broker-assisted Trading solution provides traders new to the field with the essential advice and tools they need to accelerate their understanding of the Light crude oil futures market.

Disclaimer

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve a substantial risk of loss and are not suitable for all investors.

Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you regarding your circumstances, knowledge, and financial resources.

You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Start Light Crude Oil Futures Trading:

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Light Crude Oil Futures Prices — Historical Chart

Chart of Light Crude Oil Futures Prices updated December 25th, 2023. Click the chart to enlarge. Press ESC to close.

Disclaimer: This material is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.

Light Crude Oil Futures Contract Specifications

Product Symbol	CL
Contract Size	1,000 barrels
Price Quotation	U.S. Dollars and Cents per barrel
Venue	CME Globex, CME ClearPort, Open Outcry (New York)
CME Globex Hours (EST)	Sunday - Friday 6:00 p.m. - 5:15 p.m. New York time/ET (5:00 p.m. - 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)
CME ClearPort Hours (EST)	Sunday - Friday 6:00 p.m. - 5:15 p.m. (5:00 p.m. - 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)
Open Outcry Hours (EST)	Monday - Friday 9:00 AM to 2:30 PM (8:00 AM to 1:30 PM CT)
Minimum Fluctuation	$0.01 per barrel
Termination of Trading	Trading in the current delivery month shall cease on the third business day prior to the twenty-fifth calendar day of the month preceding the delivery month. If the twenty-fifth calendar day of the month is a non-business day, trading shall cease on the third business day prior to the last business day preceding the twenty-fifth calendar day. In the event that the official Exchange holiday schedule changes subsequent to the listing of a Crude Oil futures, the originally listed expiration date shall remain in effect. In the event that the originally listed expiration day is declared a holiday, expiration will move to the business day immediately prior.
Listed Contracts	Crude oil futures are listed nine years forward using the following listing schedule: consecutive months are listed for the current year and the next five years; in addition, the June and December contract months are listed beyond the sixth year. Additional months will be added on an annual basis after the December contract expires, so that an additional June and December contract would be added nine years forward, and the consecutive months in the sixth calendar year will be filled in. 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 transaction. These calendar strips are executed during open outcry trading hours.
Settlement Type	Physical
Delivery	(A) Delivery shall be made F.O.B. at any pipeline or storage facility in Cushing, Oklahoma with pipeline access to TEPPCO, Cushing storage or Equilon Pipeline Company LLC Cushing storage. Delivery shall be made in accordance with all applicable Federal executive orders and all applicable Federal, State and local laws and regulations. For the purposes of this Rule, the term F.O.B. shall mean a delivery in which the seller: provides light "sweet" crude oil to the point of connection between seller's incoming and buyer's outgoing pipeline or storage facility which is free of all liens, encumbrances, unpaid taxes, fees and other charges; in the event of the buyer's election to take delivery by interfacility transfer ("pump over") to either TEPPCO, Cushing or Equilon Pipeline Company LLC, Cushing, from seller's delivery facility, bears the lesser of the pump over charge applicable for pump over from seller's delivery facility to TEPPCO or Equilon Pipeline Company LLC; retains title to and bears the risk of loss for the product to the point of connection between the buyer's outgoing and the seller's incoming pipeline or storage facility. (B) At buyer's option, such delivery shall be made by any of the following methods: By interfacility transfer ("pump over") into a designated pipeline or storage facility with access to seller's incoming pipeline or storage facility. By in-tank transfer of title to the buyer without physical movement of product; if the facility used by the seller allows such transfer, or by in-line transfer or book-out if the seller agrees to such transfer. (C) All deliveries made in accordance with these rules shall be final and there shall be no appeal. (D) Any seller delivering less than 5 contracts for one customer shall deliver out of storage at the Equilon Pipeline Company LLC facilities, unless the buyer and seller mutually agree to exempt the seller from this requirement. The seller shall provide preliminary confirmation of title transfer at the time of delivery by telex or other appropriate form of documentation.
Delivery Period	(A) Delivery shall take place no earlier than the first calendar day of the delivery month and no later than the last calendar day of the delivery month. (B) It is the short's obligation to ensure that its crude oil receipts, including each specific foreign crude oil stream, if applicable, are available to begin flowing ratably in Cushing, Oklahoma by the first day of the delivery month, in accord with generally accepted pipeline scheduling practices. (C) Transfer of title-The seller shall give the buyer pipeline ticket, any other quantitative certificates and all appropriate documents upon receipt of payment. The seller shall provide preliminary confirmation of title transfer at the time of delivery by telex or other appropriate form of documentation.
Grade and Quality Specifications	Please see rulebook chapter 200
Exchange Rule	These contracts are listed with, and subject to, the rules and regulations of NYMEX.

Light Crude Oil Futures Trading