Energy futures put a price on the fuels that run the economy: crude oil, natural gas, gasoline and diesel. They are vital tools for producers, refiners, airlines and utilities, and they are also some of the most volatile contracts an individual trader can encounter.
What energy futures are
Energy futures are standardized contracts for a set quantity and quality of fuel, delivered at a specific location and time. The best-known U.S. contracts trade on NYMEX, part of CME Group. The flagship crude oil contract, Light Sweet Crude Oil (often called WTI), covers 1,000 barrels and is physically delivered at Cushing, Oklahoma.
Because most traders never want a tanker of oil, they close or roll positions before the delivery period. Missing those dates can create serious problems, which is why understanding expiration and rollover matters more in energy than almost anywhere else.
Who uses them
The CFTC notes that most futures participants are commercial producers or consumers who hedge to protect against price swings. In energy, that includes oil producers locking in sale prices, refiners managing the gap between crude and fuel prices, airlines hedging jet fuel costs, and utilities managing natural gas purchases.
Speculators, including funds and individual traders, take positions to try to profit from price changes. Their participation adds liquidity, and they carry the full risk of their positions.
The major contracts at a glance
| Contract | Symbol | Exchange | Contract unit | Minimum tick | Tick value |
|---|---|---|---|---|---|
| Light Sweet Crude Oil (WTI) | CL | NYMEX | 1,000 barrels | $0.01 per barrel | $10.00 |
| Micro WTI Crude Oil | MCL | NYMEX | 100 barrels | $0.01 per barrel | $1.00 |
| Henry Hub Natural Gas | NG | NYMEX | 10,000 MMBtu | $0.001 per MMBtu | $10.00 |
| RBOB Gasoline | RB | NYMEX | 42,000 gallons | $0.0001 per gallon | $4.20 |
| NY Harbor ULSD (heating oil) | HO | NYMEX | 42,000 gallons | $0.0001 per gallon | $4.20 |
Tick value = minimum tick × contract unit.
Specs change
Contract terms are set by the exchange and can be amended. Confirm current specifications, delivery terms and last trading days on CME Group before trading.
What moves energy prices
- The EIA Weekly Petroleum Status Report. The U.S. Energy Information Administration publishes weekly data on crude and product inventories, refinery activity, imports and exports. Surprises in inventory levels often move crude, gasoline and heating oil futures.
- Weekly natural gas storage data, also from the EIA, which shows how much gas has been injected into or withdrawn from storage.
- Weather. Heat waves raise power demand, cold snaps raise heating demand, and hurricanes can disrupt Gulf Coast production and refining.
- Global supply decisions by major producing countries, plus geopolitical events affecting shipping routes or production.
- The economy and the dollar. Slower growth tends to reduce fuel demand, and oil is priced globally in U.S. dollars.
Our fundamental analysis guide explains how to read supply and demand reports without overreacting to a single number.
Seasonality and the refined products
Energy markets have strong seasonal patterns. Gasoline demand typically rises in the U.S. summer driving season, while heating oil and natural gas demand peak in winter. Refiners watch the "crack spread," the difference between the price of crude oil and the fuels made from it, and some traders study it as a spread trade.
Seasonal tendencies are not guarantees. Weather, supply shocks and economic changes regularly override them.
Trading hours
Many NYMEX energy contracts trade on CME Globex nearly 24 hours a day, Sunday evening through Friday afternoon (Central Time), with a short daily break. Confirm the current schedule and holiday hours on CME Group's trading-hours page.
Risks specific to energy futures
- Sharp, fast moves. Inventory surprises, weather forecasts and geopolitical headlines can move prices several percent in minutes.
- Physical delivery deadlines. Positions in physically delivered contracts must be closed or rolled on time. Brokers often require this days before the last trading day.
- Gaps. Prices can jump between sessions, so stop orders may fill well away from the intended price.
- Natural gas is especially volatile. Even with a small position, daily swings can be large relative to your account.
A worked example: a $1 move in crude
Crude oil prices are quoted in dollars and cents per barrel. If WTI moves from $70.00 to $71.00, that is 100 ticks of $0.01. On one standard CL contract (1,000 barrels), the change is $1,000. On one Micro WTI contract (100 barrels), it is $100.
Natural gas works the same way with different units. A move of $0.10 per MMBtu is 100 ticks of $0.001. On one NG contract (10,000 MMBtu), that equals $1,000. Because natural gas prices are often a few dollars per MMBtu, a $0.10 move can be a meaningful percentage change, which is part of why natural gas feels so volatile.
Gasoline and heating oil are priced per gallon. A 5-cent move per gallon is 500 ticks of $0.0001, or $2,100 per 42,000-gallon contract.
| Contract | Example move | Value per contract |
|---|---|---|
| CL | $1.00 per barrel | $1,000 |
| MCL | $1.00 per barrel | $100 |
| NG | $0.10 per MMBtu | $1,000 |
| RB or HO | $0.05 per gallon | $2,100 |
How beginners can study this market
- Read one EIA weekly report from start to finish and note which numbers the market seemed to focus on.
- Practice the math. Calculate what a $1 move per barrel means for one CL contract ($1,000) and one MCL contract ($100).
- Paper trade micro WTI first. Micro contracts reduce dollar risk per tick, but they are still leveraged.
- Mark delivery dates on a calendar for any contract you study, even in a simulator, so the habit is in place before real money is involved.
- Size positions from your risk limit, not from how confident you feel. Use our position size calculator.
FuturesSignal.com is an education resource. Nothing on this page is a recommendation to buy or sell any contract.
Before you trade
Futures are leveraged. A small price move can produce a large gain or loss, and losses can exceed the money in your account. This article is general education, not a recommendation to buy or sell any contract.
- Practice in a simulated (paper) account before using real money.
- Decide your maximum loss per trade before you enter, and size positions to it.
- Confirm current contract specifications and margin requirements with the exchange and your broker.
Common questions
How much is one tick worth in crude oil futures?
For the standard NYMEX WTI contract (CL), the minimum move is $0.01 per barrel on 1,000 barrels, or $10 per contract. Micro WTI (MCL) covers 100 barrels, so one tick is $1.
Are crude oil futures physically delivered?
The standard NYMEX Light Sweet Crude Oil contract is physically delivered at Cushing, Oklahoma. Most individual traders close or roll positions before the delivery period; your broker will set its own deadlines.
Why is natural gas so volatile?
Natural gas demand swings with weather, and storage and production can't adjust instantly. Forecast changes, storage reports and seasonal demand can produce large price moves in a short time.
Sources
- Basics of Futures Trading — U.S. Commodity Futures Trading Commission. www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/FuturesMarketBasics/index.htm
- Light Sweet Crude Oil Futures, Rulebook Chapter 200 — CME Group (NYMEX). www.cmegroup.com/rulebook/NYMEX/2/200.pdf
- Henry Hub Natural Gas Futures, Rulebook Chapter 220 — CME Group (NYMEX). www.cmegroup.com/rulebook/NYMEX/2/220.pdf
- Micro WTI Crude Oil Futures Fact Card — CME Group. cmegroup.com/trading/energy/files/micro-wti-crude-oil-futures-fact-card.pdf
- Weekly Petroleum Status Report — U.S. Energy Information Administration. www.eia.gov/petroleum/supply/weekly
Last reviewed October 17, 2026. Educational content only; not investment advice. Contract specifications and margins change, so confirm current figures with the exchange and your broker. See our risk disclosure.
