NYMEX Crude and Refined Energy Contracts

  • 28 Jul 2017
  • By CME Group
  • Topics: Energy

CLEARING TRADES WITH A NON-STANDARD PRICING PERIOD USING BALMO  CONTRACTS

NYMEX lists “BALMO” (Balance of the Month) contracts for certain Crude Oil and Refined contracts for the current month and the next two calendar months. For example, as of 11 May 2017, NYMEX listed BALMO contracts for May 2017, Jun 2017 and Jul 2017.

These contracts enable you to clear trades with pricing based on a period different than a full month, with a choice of three rolling maturities.

The Floating Price for each BALMO contract month is equal to the balance-of-month arithmetic average of the mid-point of the high and low quotations from Platts assessments for the relevant underlying. The average is taken for each business day that it is determined during the contract month starting from the selected start date through the end of the month.

By allowing market participants to define the starting day of the pricing period, BALMO contracts provide the possibility to clear many trades beyond the simple balance of the current month.

The below examples are based on Singapore working days. Prices are only indicative for illustration.

 

Example 1:

On 11 May 2017, traders A and B make a deal with their broker on Mogas 92 Singapore, 100 kb, pricing 15-19 May 2017

@ 62.05 $/bbl

– 1P is the clearing code for Mogas 92 FOB Singapore – BALMO

Trader A (buyer of the swap) and Trader B (seller of the swap) post the following trades:

May 2017

Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31

Trader A (swap buyer)
buy 260 lots BALMO May’17 - 1P, (15-31) @ 62.05 $/bbl
sell 160 lots BALMO May’17 - 1P, (22-31) @ 62.05 $/bbl

Trader B (swap seller)
sell 260 lots BALMO May’17 - 1P, (15-31) @ 62.05 $/bbl
buy 160 lots BALMO May’17 - 1P, (22-31) @ 62.05 $/bbl

Resulting Position
100 lots 15-19 May’17 @62.05 $/bbl

 

Example 2:

On 11 May 2017, traders A and B agree to a deal with their broker on Mogas 92 Singapore, 110 kb, for a time-spread,

1st half June vs 2nd half June @ 0.40 $/bbl (backwardation).

–  1N is the clearing code for Mogas 92 FOB Singapore (full month)

–  1P is the clearing code for Mogas 92 FOB Singapore – BALMO

Trader A (buyer of the swap) and Trader B (seller of the swap) post the following trades:

June 2017

Mon Tue Wed Thu Fri Sat Sun
      1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30    

Trader A (swap buyer)
buy 210 lots Jun17 - 1N @ 61.15 $/bbl
sell 100 lots Jun17 - 1P (16-30) @ 61.15 $/bbl
sell 110 lots Jun17 - 1P (16-30) @ 60.75 $/bbl

Trader B (swap seller)
sell 210 lots Jun17 - 1N @ 61.15 $/bbl
buy 100 lots Jun17 - 1P (16-30) @ 61.15 $/bbl
buy 110 lots Jun17 - 1P (16-30) @ 60.75 $/bbl

Resulting Position
110 lots T/S 1st half Jun17 vs 2nd half Jun17 @ 0.40 $/bbl

 

Example 3:

On 11 May 2017, traders A and B agree to a deal with their broker on Mogas 92 Singapore, 100 kb, for a time-spread, 2nd half June vs 1st half July @ 0.30 $/bbl (backwardation).

– 1N is the clearing code for Mogas 92 FOB Singapore (full month)

– 1P is the clearing code for Mogas 92 FOB Singapore – BALMO

Trader A (buyer of the swap) and Trader B (seller of the swap) post the following trades:

July 2017

Mon Tue Wed Thu Fri Sat Sun
          1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31            

Trader A (swap buyer)
buy 100 lots Jun17 - 1P (16-30) @ 60.75 $/bbl
sell 210 lots Jul17 - 1N @ 60.45 $/bbl
buy 110 lots Jul17 - 1P (17-31) @ 60.45 $/bbl

Trader B (swap seller)
sell 100 lots Jun17 - 1P (16-30) @ 60.75 $/bbl
buy 210 lots Jul17 - 1N @ 60.45 $/bbl
sell 110 lots Jul17 - 1P (17-31) @ 60.45 $/bbl

Resulting Position
100 lots T/S 2nd half Jun’17 vs 1st half Jul’17 @ 0.30 $/bbl

Block size for BALMO contracts are identical to their respective “full month” contracts (5 lots for contracts quoted in tone, 10 lots for contracts quoted in barrel).

Most commonly used BALMO energy contracts:

N. America - Crude oil

For these following contracts, BALMO contracts are listed for one month and the following month for 10 business days prior to the start of the contract month.

Clearport Code Description
CS
42
WTI Financial
WTI Financial BALMO
HIL
HTB
WTI Houston vs WTI
WTI Houston vs WTI BALMO
WJ
LWB
LLS vs WTI
LLS vs WTI BALMO
LLR
LBB
LLS vs Brent
LLS vs Brent BALMO
WCC
CHB
Canadian Heavy Crude Oil
Canadian Heavy Crude Oil BALMO

International - Crude oil

For these following contracts, BALMO contracts are listed for one month and the following month for 10 business days prior to the start of the contract month.

Clearport Code Description
CY
J9
Brent Financial
Brent Financial BALMO
UB
DBB
Brent Dated
Brent Dated BALMO
FY
FE
Brent Dated to Front Line
Brent Dated to Front Line BALMO
DC
BI
DBL
DBT
Dubai
Dubai BALMO
mini Dubai
mini Dubai BALMO

Asia - outrights

Clearport Code Description
JA
E6
MJN
E6M
Japan C&F Naphtha
Japan C&F Naphtha BALMO
mini Japan C&F Naphtha
mini Japan C&F Naphtha BALMO
SP
KU
Singapore Naphtha
Singapore Naphtha BALMO
1N
1P
Singapore MOGAS 92 Unleaded
Singapore MOGAS 92 Unleaded BALMO
VO
WO
Singapore MOGAS 95 Unleaded
Singapore MOGAS 95 Unleaded BALMO
XO
YO
Singapore MOGAS 97 Unleaded
Singapore MOGAS 97 Unleaded BALMO
KS
BX
Singapore Jet Kerosene futures
Singapore Jet Kerosene BALMO
SG
VU
Singapore Gasoil futures
Singapore Gasoil futures - BALMO
UA
BS
0F
5L
Singapore Fuel 180cst
Singapore Fuel 180cst BALMO
mini Singapore Fuel 180cst
mini Singapore Fuel 180cst BALMO
SE
BT
MTS
MTB
Singapore Fuel 380cst
Singapore Fuel 380cst BALMO
mini Singapore Fuel 380cst
mini Singapore Fuel 380cst BALMO

Asia - spreads

Clearport Code Description
RK
ZO
Regrade
Regrade BALMO
SD
MSD
Visco
Visco BALMO

Asia - cracks

Clearport Code Description
STS
STB
Singapore Fuel 180cst vs Dubai
Singapore Fuel 180cst vs Dubai BALMO

East/West

Clearport Code Description
EW
EWB
East-West Fuel Oil Spread
East-West Fuel Oil Spread BALMO
EVC
SFB
Singapore Fuel 380cst vs Fuel 3.5% Barges FOB R’dam
Singapore Fuel 380cst vs Fuel 3.5% Barges FOB R’dam BALMO

Europe - outrights (clean)

Clearport Code Description
UN
KZ
MNC
MEN
European Naphtha CIF NWE
European Naphtha CIF NWE BALMO
mini European Naphtha CIF NWE
mini European Naphtha CIF NWE BALMO
7H
7R
MEO
MEB
Gasoline Euro-bob Oxy NWE Barges
Gasoline Euro-bob Oxy NWE Barges BALMO
mini Gasoline Euro-bob Oxy NWE Barges
mini Gasoline-bob Oxy NWE Barges BALMO
7P
7S
Euro-bob Gasoline 10 ppm Barges FOB R’dam
Euro-bob Gasoline 10 ppm Barges FOB R’dam BALMO
7L
7N
Premium Unleaded Gasoline 10 ppm FOB
R’dam Premium Unleaded Gasoline 10 ppm FOB R’dam BALMO
3G
8G
Premium Unleaded Gasoline 10 ppm FOB Med
Premium Unleaded Gasoline 10 ppm FOB Med BALMO
UJ
F3
Jet Kerosene Cargoes CIF NWE
Jet Kerosene Cargoes CIF NWE BALMO
UR
X9
Jet Kerosene FOB Barges R'dam
Jet Kerosene FOB Barges R'dam BALMO
TY
B1
ULSD 10 ppm Cargoes CIF NWE
ULSD 10 ppm Cargoes CIF NWE BALMO
GT
U7
Diesel 10 ppm Barges FOB R'dam
Diesel 10 ppm Barges FOB R'dam BALMO
TW
B7
Gasoil 0.1 Cargoes CIF NWE
Gasoil 0.1 Cargoes CIF NWE BALMO
VL
B8
Gasoil 0.1 Barges FOB R'dam
Gasoil 0.1 Barges FOB R'dam BALMO
Z6
X7
ULSD 10 ppm Cargoes CIF Med
ULSD 10 ppm Cargoes CIF Med BALMO
Z4
X6
Gasoil 0.1 Cargoes CIF Med
Gasoil 0.1 Cargoes CIF Med BALMO

Europe - outrights (dirty)

Clearport Code Description
UV
KR
0D
0E
Fuel 3.5% FOB Barges R'dam
Fuel 3.5% FOB Barges R'dam BALMO
mini Fuel 3.5% FOB Barges R'dam
mini Fuel 3.5% FOB Barges R'dam BALMO
UH
6L
T0
0A
Fuel 1% FOB Barges R'dam
Fuel 1% FOB Barges R'dam BALMO
mini Fuel 1% FOB Barges R'dam
mini Fuel 1% FOB Barges R'dam BALMO
UF
KX
0B
0C
Fuel 1% Cargoes FOB NWE
Fuel 1% Cargoes FOB NWE BALMO
mini Fuel 1% Cargoes FOB NWE
mini Fuel 1% Cargoes FOB NWE BALMO
UI
EFF
Fuel 3.5% Cargoes FOB Med
Fuel 3.5% Cargoes FOB Med BALMO
EFM
FOM
Fuel 1% Cargoes FOB Med
Fuel 1% Cargoes FOB Med BALMO
7D
8D
Fuel 3.5% Cargoes CIF Med
Fuel 3.5% Cargoes CIF Med BALMO
1W
FOB
Fuel 1% Cargoes CIF Med
Fuel 1% Cargoes CIF Med BALMO

Europe - cracks

Clearport Code Description
NOB/EN
NBB/43
Naphtha Cargoes CIF NWE Crack Spread (1000mt or 1000 bbl)
Naphtha Cargoes CIF NWE Crack Spread BALMO(1000mt or 1000 bbl)
7K
7I
Gasoline Euro-bob Oxy NWE Barges Crack Spread
Gasoline Euro-bob Oxy NWE Barges Crack Spread BALMO
JFC
JFB
Jet Kerosene Cargoes CIF NWE Crack Spread
Jet Kerosene Cargoes CIF NWE Crack Spread BALMO
GZ
ESB
European Low Sulphur Gasoil Brent Crack Spread
European Low Sulphur Gasoil Brent Crack Spread BALMO
GOC
ESS
Low Sulphur Gasoil Crack Spread (1000 mt)
Low Sulphur Gasoil Crack Spread (1000 mt) BALMO
FO
FCB
Fuel 3.5% FOB Barges R'dam Crack Spread
Fuel 3.5% FOB Barges R'dam Crack Spread BALMO
FL
FOA
Fuel 3.5% Cargoes FOB Med Crack Spread
Fuel 3.5% Cargoes FOB Med Crack Spread BALMO

Europe - spreads

Clearport Code Description
JC
6X
Jet Cargoes CIF NWE vs Low Sulphur Gasoil
Jet Cargoes CIF NWE vs Low Sulphur Gasoil BALMO
JR
9Q
Jet Barges FOB R'dam vs Low Sulphur Gasoil
Jet Barges FOB R'dam vs Low Sulphur Gasoil BALMO
TP
3V
ULSD 10 ppm Cargoes CIF NWE vs Low Sulphur Gasoil
ULSD 10 ppm Cargoes CIF NWE vs Low Sulphur Gasoil BALMO
ET
7X
Diesel 10 ppm Barges FOB R'dam vs Low Sulphur Gasoil
Diesel 10 ppm Barges FOB R'dam vs Low Sulphur Gasoil BALMO
TU
4V
Gasoil 0.1 Cargoes CIF NWE vs Low Sulphur Gasoil
Gasoil 0.1 Cargoes CIF NWE vs Low Sulphur Gasoil BALMO
WQ
6V
Gasoil 0.1 Barges FOB R'dam vs Low Sulphur Gasoil
asoil 0.1 Barges FOB R'dam vs Low Sulphur Gasoil BALMO
Z7
7V
ULSD 10 ppm Cargoes CIF Med vs Low Sulphur Gasoil
ULSD 10 ppm Cargoes CIF Med vs Low Sulphur Gasoil BALMO
Z5
8W
Gasoil 0.1 Cargoes CIF Med vs Low Sulphur Gasoil
Gasoil 0.1 Cargoes CIF Med vs Low Sulphur Gasoil BALMO
33
EBF
Fuel 1% FOB Barges R'dam vs Fuel 1% Cargoes FOB NWE
Fuel 1% FOB Barges R'dam vs Fuel 1% Cargoes FOB NWE BALMO
FS
88
Fuel 1% Cargoes FOB NWE vs Fuel 3.5% Barges FOB R'dam
Fuel 1% Cargoes FOB NWE vs Fuel 3.5% Barges FOB R'dam BALMO
FK
63
Fuel 3.5% Cargoes FOB MED vs Fuel 3.5% Barges FOB R'dam
Fuel 3.5% Cargoes FOB MED vs Fuel 3.5% Barges FOB R'dam BALMO

Questions

For a full product listing of BALMO contracts, visit cmegroup.com/energy
or contact a member of the Energy team at energy@cmegroup.com


 

All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author(s) and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.

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