Oil Futures, Explained
The "oil price" you see quoted is a futures contract — a standardized promise to deliver 1,000 barrels at a set date and place. Here's how the contracts work, what the monthly roll and the curve mean, and why a futures quirk once sent oil to −$37.
Contract Specs
| WTI (CL) | Brent (BZ) | |
|---|---|---|
| Exchange | NYMEX (CME) | ICE |
| Size | 1,000 barrels | 1,000 barrels |
| Settlement | Physical delivery, Cushing OK | Cash-settled |
| Tick value | $0.01/bbl = $10 per contract | $0.01/bbl = $10 |
| Expiry | ~20th of the prior month | ~end of the second prior month |
| Contracts listed | Monthly, ~10 years out | Monthly, ~8 years out |
See the live term structure on the prices page and outlook — what the shape means is covered on backwardation vs. contango. Positioning data (who's long, who's short) is on fundamentals via the CFTC COT report.
What One Contract Is Worth at Today's Prices
| Contract | Size | Last close | Value of one contract | Value of a $1 move | Value of one tick |
|---|---|---|---|---|---|
| WTI crude (NYMEX CL) | 1,000 barrels | 97.97 | $97,970 | $1,000 | $10.00 |
| Brent crude (ICE BZ) | 1,000 barrels | 108.54 | $108,540 | $1,000 | $10.00 |
| Henry Hub natural gas (NYMEX NG) | 10,000 MMBtu | 3.083 | $30,830 | $10,000 | $10.00 |
| RBOB gasoline (NYMEX RB) | 42,000 gallons | 3.115 | $130,830 | $42,000 | $4.20 |
| ULSD / heating oil (NYMEX HO) | 42,000 gallons | 4.710 | $197,820 | $42,000 | $4.20 |
Value of one contract = last settlement × contract size (notional exposure, not the margin a broker requires, which is a fraction of it and changes with volatility). A $1 move is in the contract's own price unit: $1 a barrel, $1 a MMBtu or $1 a gallon. Sizes and tick values are the exchanges' published specifications: 1,000 barrels and $0.01 for crude, 10,000 MMBtu and $0.001 for gas, 42,000 gallons and $0.0001 for the two products. Closes from Oct 19, 2026. A contract-value calculator: energy tools.
Oil Futures FAQ
What are oil futures?
Standardized contracts to buy or sell crude at a set price on a future date — the NYMEX WTI contract (ticker CL) covers 1,000 barrels for delivery at Cushing, Oklahoma; ICE Brent settles financially against North Sea prices. When headlines say "oil rose 2%," they mean the front-month futures price: futures ARE the benchmark oil price.
Do futures traders actually take delivery of oil?
Almost never — the vast majority of positions are closed or rolled before expiry, and Brent is cash-settled by design. Physical delivery (or the fear of it) is what famously drove WTI to −$37.63 in April 2020: contract holders with nowhere to store oil paid others to take it.
What is the front month?
The contract closest to expiry — the quoted "oil price" (WTI last closed at $97.97 on 2026-10-19). WTI contracts expire around the 20th of each month; quotes then roll to the next month, which can cause small price jumps unrelated to fundamentals.
Can regular investors trade oil futures?
Yes, through futures brokers — but a single CL contract controls 1,000 barrels, so a $1 price move is $1,000 per contract, and leverage cuts both ways. Retail alternatives (oil ETFs holding futures) suffer roll costs in contango markets and are known for tracking the spot price poorly over long periods. This is context, not investment advice.