Frequently Asked Questions
Institutional clarity on commodity futures contract specifications, EIA inventory metrics, and market models.
What is the difference between spot crude and futures contracts?
Spot crude represents immediate physical delivery of petroleum, whereas futures contracts (like CME CL) are standardized exchange agreements to buy or sell oil at a predetermined price on a specific settlement date in the future.
How much capital is required to start trading crude oil?
While standard NYMEX CL contracts control 1,000 barrels requiring substantial margin, Micro Crude Oil (/MCL) contracts control 100 barrels with intraday margins as low as $50 on leading retail brokers like NinjaTrader.
Why does the Brent-WTI price spread fluctuate?
The spread reflects logistical pipeline friction between the US Permian/Cushing hub and international seaborne export terminals, ocean freight VLCC shipping rates, and regional refinery crack spreads.