Q2 2022 Energy Update

  • 12 Apr 2022
  • By CME Group

U.S. domestic grades trading makes a comeback in 2022

U.S. domestic crude oil grades are competing in the global marketplace and have become important price references in the international market. The proposed inclusion of WTI Midland in the Dated Brent assessment will further solidify CME Group's Light Sweet Crude Oil futures presence as a global benchmark. At a time of increased volatility, the ability to manage export risk has never been more important. 

Open interest and volume in CME Group WTI Houston (Argus) and WTI Midland (Argus) futures contracts have grown due to expanded pipeline infrastructure in the U.S. Gulf Coast and Permian Basin providing optionality in the marketplace.

Expanded voluntary carbon offset futures

On March 7, CME Group launched Core Global Emissions Offset futures. This new contract builds on the success of Global Emissions Offset (GEO) futures and Nature-Based Global Emissions (N-GEO) futures launched in 2021.

These three futures products are structured similarly to provide traders familiarity across the carbon offsets suite; however, each contract boasts unique underlying specifications enabling traders to focus on specific aspects such as approved registries, type of underlying project, and vintage years.

These products have received high interest from traders and volumes are growing significantly in 2022:

  • The number of firms trading GEO and N-GEO in the first two months of 2022 has surpassed the number of participants in all of 2021.
  • Combined GEO and N-GEO futures have traded over 89K contracts, equating to over 89M carbon offsets.
  • Record volumes and open interest are continually being broken. The most recent single-day records for volume and open interest were set on March 16, with combined GEO and N-GEO volumes equaling 4,718 and open interest of 19,761.
  • To date, ~73% of volume is traded in N-GEO futures and 27% is from GEO. Similarly, open interest is split 76% N-GEO to 24% GEO.
  • Six unique firms have traded over 150 lots since C-GEO futures launched

Source: CME Group

Learn more:

 C-GEO futures
 N-GEO futures
 GEO futures

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WTI futures and options reach new milestones

WTI futures average daily volume (ADV) is at 1.14M, 4% above Q1 2021. WTI options ADV is at 156K, the highest since Q1 2020. 22% of both WTI futures and WTI options are now traded during non-U.S. hours – a new record for WTI options.

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Container Freight Rate futures are now live

Just a week after launch, Container Freight Rate futures had their first trade on March 8. This is a new, first-of-its-kind product suite on six major trade lanes. Each trade lane is based on Freightos Baltic FBX trade lanes and calculated from spot rates offered by carriers to international freight forwarders on Freightos applications.

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Coming soon: Event-based contracts

Introducing event-based contracts launching Q3 2022. Event-based contracts are designed to make it easier for everyone to trade their views on daily up or down price moves in some of the world's most widely quoted benchmark futures markets, including gold, oil, equity indices and foreign currencies. 

These new daily options on futures contracts will offer short-term trading opportunities for individuals seeking to take a position on daily price moves using smaller-value trades of up to $20 per contract.

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Trade global gas on Trayport Joule Direct

With four simple steps, you can trade NYMEX Energy products using Trayport Joule Direct.

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Data as of March 21, 2022 unless otherwise specified.