Q1 2020 Energy Report

CME Group provides access to global Energy benchmark products on NYMEX, the most liquid marketplace with the widest range of Energy futures and options contracts. Our expanding suite of Energy derivatives are available nearly 24 hours a day through our platforms with a suite of pre- and post- trade services.

Highlights include:

• Record levels of extended trading hours volume across Energy products, including WTI Crude futures (CL) with 20.3% of total volume, WTI Crude options (LO) with 16.3%, NY USLD futures (HO) with 8.9%, RBOB Gasoline futures (RB) with 9.4%.
• Successful execution of three CME electronic auctions of US Crude Oil, allowing physical traders to purchase export cargoes based on NYMEX WTI Houston (HCL) futures.
• Record NY USLD futures (HO) average daily volume in Q4 2019 of 200K contracts traded.
• Record Japan/Korea Marker futures (JKM) average daily volume of 125 contracts traded with an average open interest of 6,600 in Q4 2019.

NYMEX Energy benchmarks in 2019

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Our expanding suite of Freight products include three new contracts, allowing LNG participants to effectively hedge LNG freight exposure across three routes: Sabine to Tokyo, Gladstone to Tokyo, and Sabine to UK.

Freight futures’ volumes more than doubled during the last 12 months as market participants look to manage rising costs while new LNG Freight futures traded over 50 lots across all three routes on launch day. The financially-settled LNG Freight futures offer increased flexibility in the LNG marketplace, added counterparty risk mitigation through CME Clearing, and margin offsets to key NYMEX Natural Gas contracts.

Hedge global shipping costs with LNG Freight futures on NYMEX.

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Starting with the March 2020 contract, physically delivered WTI Houston Crude Oil will be more reflective of Permian grade crude in the US Gulf Coast market. The enhancements offer the US Gulf Coast crude oil marketplace additional access to adjacent crude markets and a precise hedging tool. 

WTI Houston enhancements:

• Sulfur is lowering from 0.275% to 0.200% max.
• Nickel and Vanadium now have aggregate maximum of 3 ppm, down from 4 ppm max each (8 ppm total).
• Moore Rd is now an available delivery point for buyers.
• Enterprise service fees are being eliminated for sellers at Genoa Junction and Enterprise Houston Ship Channel (EHSC).
• Free on board (FOB) delivery at export docks located at Enterprise Houston Ship Channel (EHSC) is being added in Q2 2020.
• Weekly crude oil quality is being reported at the ECHO delivery hub.

Keep track of weekly crude oil quality statistics at ECHO terminal, based on average sample results of individual WTI and WTL batches.

See what's coming to the Houston crude market

With the implementation of International Maritime Organization (IMO) 2020 low sulfur regulations, global shipping prices are uncertain and causing a rise in liquidity across 0.5% Marine Fuel futures contracts. Our suite of Marine Fuel 0.5% futures, a series of cash-settled futures contracts based on the Platts price assessment, allows traders to hedge marine fuel exposure in three locations: Houston, Singapore, and Rotterdam.

Participants now have more flexibility to hedge IMO 2020 compliant fuel oil across three regions. Since launch, 12 different NYMEX Marine Fuel 0.5% futures have traded at CME Group across the Rotterdam, Singapore, and US Gulf Coast regions. Marine Fuel 0.5% futures average open interest surged to 12,321 in December 2019, more than doubling November’s average open interest of 5,912.