NSE is introducing trading in cash settled WTI Crude Oil Futures contracts with a contract size of 100 barrels from 15th May 2023 onwards in its Commodities segment. You can check the announcement from the exchange here.
About WTI Crude oil:
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WTI also known as West Texas Intermediate and Brent Crude Oil derivative contracts are amongst the top 5 traded products in Commodities markets worldwide.
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WTI Crude oil is a specific grade of crude oil and one of the main three benchmarks in oil pricing, along with Brent and Dubai Crude. It is the main oil benchmark for North America as it is sourced from the United States, primarily from the Permian Basin and Texas. WTI is known as a light sweet oil because it contains between 0.24% and 0.34% sulfur, making it “sweet,” and has a low density (specific gravity), making it light.
Factors affecting market fundamentals
- US Crude oil inventories
- Economic factors: recession, inflation, economic crisis
- Speculation, hedging & investment
- Geopolitical actions
- Weather conditions
- OPEC & Non-OPEC decisions & broadcasts
- Global economic growth & trade policies
Contract Specifications
| Product Parameters | Details |
|---|---|
| Underlying | WTI Crude Oil |
| Instrument Type | Futures Contract (FUTENR) |
| Product | WTI Crude Oil Futures |
| Symbol | WTICRUDE |
| Description | WTICRUDEYYMMM |
| Contract Listing | 15th May, 2023 |
| Contract Start Day | As per contract launch calendar |
| Last Trading Day (Contract Expiry) | As per contract launch calendar |
| Trading Period | Monday to Friday |
| Trading Session | Monday - Friday: 9:00 am to 11:30 PM/11:55 PM (based on US daylight saving time) |
| Trading Unit | 100 Barrels |
| Max. Order Size | 10,000 Barrels |
| Tick Size (Minimum Price Movement) | Re. 1 per Barrel |
| Profit/Loss per tick | Rs. 100 |
| Daily Price Limits | The base price limit shall be 6%. In case the daily price limit of 6% is breached, then after a cooling off period of 15 minutes, the daily price limit will be relaxed upto 9%. In case price movement in international markets is more than the maximum daily price limit (currently 9%), the same may be further relaxed in stages of 3% beyond the maximum permitted limit, and informed to the Regulator immediately |
| Initial Margin | Minimum margin based on volatility category or based on SPAN whichever is higher. |
| Extreme Loss Margin | 1% |
| Additional and/ or Special Margin |
In case of additional volatility, an additional margin (on both buy & sale position) and/ or special margin (on either buy or sale position) at such percentage, as deemed fit; will be imposed in respect of all outstanding positions. |
| Maximum Allowable Open Position |
For a member collectively for all clients: 48,00,000 Barrels or 20% of the market wide open position, whichever is higher for all the Crude Oil contracts combined together. For individual clients: 4,80,000 barrels or 5% of the market wide open position, whichever is higher for all the Crude Oil contracts combined together. |
| Quality Specification | Light Sweet Crude Oil confirming to the following quality specification: Sulfur 0.42% by weight or less, API Gravity: Between 37 degree – 42 degree |
| Due Date Rate (Final Settlement Price) |
Due date rate (FSP) will be the settlement price in Indian Rupees. For example, on the day of expiry, if NYMEX Crude Oil (CL) front month contract settlement price is $75.40 and the last available RBI USDINR reference rate is 82.7150, then DDR for NSE WTI Crude oil contract would be Rs. 6237 per barrel (i.e. $75.40 * 82.7150 and rounded off to the nearest tick). |
| Settlement Mechanism | Cash settled |
Contract launch Calendar
| Contract Month | Contract launch date | Contract expiry date |
|---|---|---|
| June 2023 | 15th May,2023 | 16th June,2023 |
| July 2023 | 15th May,2023 | 19th July, 2023 |
| August 2023 | 15th May,2023 | 21st August,2023 |
| September 2023 | 15th May,2023 | 19th September,2023 |
| October 2023 | 15th May,2023 | 19th October, 2023 |
| November 2023 | 22nd May,2023 | 17th November, 2023 |
| December 2023 | 19th June,2023 | 18th December, 2023 |
| January 2024 | July,2023 | January,2024 |
| February 2024 | August,2023 | February,2024 |
| March 2024 | September,2023 | March,2024 |
| April 2024 | October,2023 | April,2024 |
| May 2024 | November,2023 | May,2024 |
| June 2024 | December,2023 | June,2024 |
| July 2024 | January,2024 | July,2024 |
| August 2024 | February,2024 | August,2024 |
| September 2024 | March,2024 | September,2024 |
Note:
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Dates of launch and expiry for 2024 contracts will be announced later by NYMEX
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WTI Crude futures contracts will not be available currently for trading on Kite. We’re working on making it available and will keep you posted.