Q3 2019 Energy Report

  • 7 Oct 2019
  • By CME Group
  • Topics: Energy

In Our Markets

Gulf Coast LNG Export futures launching October 14*

The United States has emerged as the world's largest gas producer and consumer, and is expected to become one of the top exporters of LNG - alongside Australia and Qatar - in the next few years.

Traders will be able to manage their natural gas exposure alongside the industry benchmark NYMEX Henry Hub futures with Gulf Coast LNG Export futures. LNG futures is the first-ever physically delivered liquefied natural gas derivative contract, and offers price discovery, market liquidity and delivery at Cheniere's Sabine Pass terminal as well as Freeport Terminal for future delivery months.

Explore LNG futures on NYMEX


Global Crude Oil overnight liquidity

The unprecedented September 14 attack on Saudi Aramco’s production facilities caused a very significant disruption of 5.7 million bbl of crude oil for more than two weeks with pre-attack output levels not resumed until October 3.

In the immediate aftermath of the attack, oil prices surged 14.6% and WTI Crude Oil (CL) futures recorded the largest volume in history, surpassing the previous record by more than 1 million contracts. Liquidity remained robust throughout the entire session.   

Liquidity in Crude Oil futures:

  • CL hit a single-day volume record of 3.7 million contracts on Sept.16 
  • A record 1.3 million CL futures contracts traded during extended trading hours on Sept. 16
  • CL futures maintained strong liquidity with the bid/ask spread briefly widening to 1.28 ticks 

Countdown to IMO 2020

The countdown to the impending International Maritime Organization (IMO) 2020 regulations, starting January 1, has started to cause a rise in liquidity across 0.5% Marine Fuel futures. 

Our suite of Marine Fuel 0.5% futures, a series of cash-settled futures contracts based on the Platts price assessment, allow traders to hedge marine fuel exposure in three locations: Houston, Singapore, and Rotterdam.

Source: CME Group

Learn more about the fuel market volatility associated with the upcoming IMO 2020 regulations in our Petromatrix chart of the week.

What's happening in the CME Group Energy options market?

CME Group options growth

The CME Group Energy options market is a great indicator of market sentiment, whether bullish or bearish, movement in options suggest implied volatility in the underlying futures contract. 

  • WTI options (LO) served as a significant risk management tool during the aftermath of the outage in Saudi Arabia, setting a single day record on Sept. 16 of over 130K options traded during non-US hours 
  • LO ATM implied volatility in September is averaging 35%, compared to 32% in August, and 30% in July
  • LO set a record of 55.3% on-screen RFQ in September - beating the previous record of 52.2% set in June
  • Natural Gas Calendar Spread Options traded a record 11,933 ADV in September; highest since Jan. 2014

Explore Energy options


Brent Crude Oil options (BZO)

Simpler expiration rules for Brent Crude Oil options are available starting with the March 2020 contract on NYMEX.

Contrary instructions for BZO will be eliminated, providing additional certainty for traders hedging the volatile crude markets

Read the SER to learn more


European Natural Gas options (TTF, NBP)

Access our expanding suite of European Natural Gas options contracts and exercise and assignment prices at CME Group.

  • UK NBP and Dutch TTF Natural Gas options are now available to trade and clear on NYMEX, alongside LNG Japan Korea Marker options
  • Monthly exercise and assignment prices for European Natural Gas options, including October 2019 expiry and beyond, are now easily accessible at CME Group

Discover European Natural Gas options


NYMEX Global Gas on Trayport Joule Direct

Access our global gas offering now available to trade on one screen.


Orbital Insights

Orbital Insight Energy provides access to global and regional crude oil volume estimates, monitoring over 5 billion barrels of oil storage capacity across more than 25,000 tanks.

Learn More


QuikStrike

The QuikVol Tool from QuikStrike lets you chart and analyze historical volatility data for more than 40 CME Group products, offering views into implied and actual volatility, skew, constant maturity, and implied volatility cones.

Learn More


Archive


What's Happening in the CME Group Energy Market?

Stay Informed. Sign up to receive updates on this expanding marketplace.