Oil Futures Margin & Contract Specifications

What is Crude Oil?

Crude oil is a naturally occurring hydrocarbon and a core resource in the modern energy system. After refining, it can be used to produce gasoline, diesel, jet fuel, plastics, and chemical feedstocks, making it indispensable for industrial production and transportation.

Crude oil is one of the most heavily traded commodities worldwide, characterized by its high degree of internationalization and price sensitivity. It also serves as a benchmark for many other commodities and energy futures.

Functions and Features of Crude Oil Futures (CL/QM/MCL)

Through crude oil futures or micro crude oil contracts, investors can directly participate in the upward or downward movements of oil prices, making them suitable for both bullish and bearish strategies.

Crude oil prices are closely linked to the global economic cycle, geopolitics, supply and demand dynamics, and the U.S. Dollar Index. As one of the key global inflation benchmark commodities, crude oil is also widely used to gauge market inflation expectations.

Crude oil futures trade nearly 24 hours a day, allowing investors to adjust their positions in real time in response to international news. With excellent market liquidity, they are well-suited for both short-term trading and long-term hedging.

Major Exchange

New York Mercantile Exchange (NYMEX)

Key Factors Influencing Crude Oil Futures (CL/QM/MCL)

1. Supply and Demand

Supply side: Production capacity and export policies of major producers such as the U.S., Saudi Arabia, and Russia.

Demand side: Global economic conditions, aviation and transportation demand, as well as import data from China and India.
Any production disruptions (e.g., pipeline ruptures, strikes, sanctions) or sudden shifts in demand (e.g., economic recessions) can trigger price volatility.

2. Geopolitics

Conflicts in the Middle East (e.g., Israel–Iran tensions) may disrupt tanker shipping routes and drive oil prices higher.

U.S. sanctions on oil-exporting countries (e.g., Iran, Russia) also reshape global supply-demand balances.

3. OPEC+ Policies and Production Agreements

The Organization of the Petroleum Exporting Countries (OPEC) and its allies play a central role in determining oil supply.

Monthly meetings and quarterly production reviews are closely watched, as their decisions have a direct impact on global oil prices.

4. U.S. Dollar Index and Interest Rate Environment

Since crude oil is priced in U.S. dollars, a stronger dollar raises costs for non-U.S. buyers, potentially reducing demand and putting downward pressure on prices.

Rising interest rates may dampen economic growth expectations, thereby lowering oil demand.

5. Commercial Inventories and Energy Reports

The U.S. Energy Information Administration (EIA) publishes weekly crude oil inventory reports, which are a major market focus.

Rising inventories → May signal weaker demand → Bearish for oil prices.

Crude Oil Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

Crude Oil Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Crude OilFutures, E-mini Crude OilFutures, MICRO WTI CRUDE OIL FUTURESFutures.

Crude OilLast Trading Day

Futures