Trade ICE Crude Futures, World Benchmark ICE Brent
If you want to trade crude oil then another available option is to use ICE Crude Futures, traded on the European arm of the Intercontinental Exchange (ICE).
ICE Europe provides a solid platform for traders and hedgers to trade all three of the world’s major crude oil benchmarks.
You have the choice of trading ICE Middle East Sour Crude, ICE Brent and ICE West Texas Intermediate (WTI) oil futures all from one platform.
With the price of crude oil projected to remain strong for the foreseeable future, the world seems to be gripped by the daily fluctuations in these important benchmarks.
articles on the commodity sector . Just your first name and email. It's as easy as 1-2-3! The ICE Europe platform is an alternative to the established NYMEX where light, sweet crude oil is heavily traded and now faces competition from two newly launched oil futures contracts on the Dubai Mercantile Exchange.
Although the volume of Saudi crudes is higher, ICE Brent is the world oil benchmark and is used to value over two thirds of globally traded petroleum.
In the Gulf, Dubai crude is the benchmark.
The ICE Brent Crude futures contract is deliverable on the basis of exchange of the futures for the physical commodity, or EFP.
It also has cash settlement as an alternative based on the ICE Brent price for the day following the last trading day of that futures contract.
Contract size is 1,000 barrels and while there is no maximum price fluctuation, the minimum is one tick.
This futures contract can be traded electronically, or as EFP or as EFS, which is exchanging the futures for a swap contract.
Hours of trading for the UK are opening at 0100 GMT (2300 on Sundays) and close of business at 2300 London time. (During the summer the times are for British Summer Time). For Singapore based trading the exchange opens at 0800 local time and closes 0600 the next day.
In the US, trading opens at 2000 EST (1800, Sundays) and closes 1800 the next day.P> For calculating settlement prices the formula used is the weighted average for trades in a three minute period ending at 1930 London time.
Contracts for ICE Brent futures expire at close of business on the working day immediately before the 15th day (if a business day) prior to the first day in the delivery month.
The rule says if that day is a weekend or holiday, then the next business day is used. ICE Middle East Sour
With the remaining global oil reserves significantly in the OPEC Middle Eastern producer states, who predominantly produce the heavy, sour grades, the inclusion of a futures contract on ICE Europe for this oil benchmark is very important.
This information is recorded in Platts Crude Oil data under the Key Benchmarks reference on the last trading day in the contract month.
Trading periods consist of 37 consecutive months, and there are also contracts for quarters and calendar year. And when do contracts expire? At 1630 local time in Singapore (0830 GMT) on the last trading day of the second month before the contract month, so if the contract month is December the contract expires last trading day of October.
Settlement price of ICE Middle East Sour futures is on the same basis and time as for ICE Brent. Contract size, minimum and maximum price variations are the same as for the Brent contract.
ICE West Texas Intermediate (WTI)
While the US benchmark WTI light, sweet crude futures contract is synonymous with NYMEX, the ICE Europe exchange also provides an opportunity to trade a cash settled futures contract, with reference to the market price of NYMEX US light sweet crude at the time.
Like the above contracts, the ICE WTI futures contract is listed for a 72 month trading period. It always seems rather convoluted when it comes to expiry dates.
As with the ICE Brent and Middle East Sour Crude futures, ICE WTI has the same trading hours in the UK, Singapore and US.
Contract size is the same as the above contracts as is the limits of price variation.
Traders need reassurance that ICE Crude futures contracts entered are secure and that there is a guarantee that all contracts registered in the names of ICE members will be honoured from start to settlement.
LCH. Clearnet Limited acts as a counterparty for these purposes for all three of the above ICE Crude Futures contracts.
With new oil futures contracts available in the rapidly expanding Dubai Mercantile Exchange, as well as the established NYMEX, this ICE Crude Futures platform, gives those keen on commodity trading a wider choice for trading the world’s most important commodity.
ICE Rotterdam and Richards Bay Coal
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