GIF
1
1
10
Conversation
Replying to
I am confused though... not quiet sure what price am I looking at... but I'll figure it out... eventually...
1
2
Replying to
1) "What are OIL contracts?
OIL contracts are futures that expire to the spot price of WTI oil. In particular, a contract expiring on day X will expire to the published Cushing, OK WTI Spot Price FOB here for day X, plus 100."
2
1
Replying to
Yep, I got that far. But can you explain me how the price of the May future can be reconciled to the actual WTI future at NYMEX (including that $100)? May settled so we know that part but what is driving the price now and why is it above $100?
1
1
Replying to
Best to have confirm. But likely key point is expires for day X to Cushing, OK WTI Spot Price FOB. By contrast NYMEX WTI futures 1) deliverable 2) terminate 3 business days prior to 25th calendar day of month prior to contract month.
Source:
1
1
Thx mate, I probably have to read a bit more about it... Cheers!
1
1
Yup, whereas CME futures are physically settled in actual barrels of oil, FTX's are cash settled according to this: eia.gov/dnav/pet/hist/
Thx guys, I still need to get my head around where/how the FTX price got derived (or is based of).
2
Ok guys, now I know where I went wrong. I thought the May20 contract had settlement on the 20th of April at -$37 BUT final settlement for that contract was 21st of April at $10.01 - Hence now your May FTX OIL future price makes sense to me.
1