West Texas Crude Oil Futures Margin & Contract Specifications

What Is West Texas Crude Oil?

West Texas crude oil refers to West Texas Intermediate (WTI), a light, sweet crude oil produced in the United States. Its quality is generally considered superior to Brent crude. WTI serves as the pricing benchmark for North America and is highly influenced by U.S. crude oil inventories (EIA data), shale oil production, and domestic U.S. demand—making it a clear reflection of U.S. crude supply and demand conditions.

On the CME, the symbol “T” usually refers to cash-settled WTI crude oil futures, which differ from the more common “CL” contracts that involve physical delivery. These cash-settled contracts are mainly used for pure price speculation and financial hedging.

Factors Affecting the Price of West Texas Crude Oil

1. OPEC Production Policy

The Organization of the Petroleum Exporting Countries (OPEC), as the world’s largest oil-producing alliance, directly affects global supply through production quotas. If OPEC decides to increase output, the resulting supply expansion typically puts downward pressure on oil prices. Markets closely monitor production trends in key oil-producing countries such as Saudi Arabia, Russia, and the United Arab Emirates, as well as OPEC’s monthly reports.

2. Production Increases from Non-OPEC Countries

Due to improved shale oil efficiency, crude oil production in countries such as the United States, Canada, and Brazil has remained near historical highs. This additional supply influences WTI prices.
Investors often focus on U.S. Energy Information Administration (EIA) crude oil inventory data and monthly reports.

3. Global GDP Growth

If major economies such as China, the United States, or the European Union slow down, industrial demand for crude oil declines, pushing prices lower. As a result, markets closely watch Purchasing Managers’ Index (PMI) data for the global economy, China, the U.S., and Europe to assess economic trends.

4. WTI Inventory Levels

Cushing, Oklahoma is the physical delivery point for WTI crude. If inventories at Cushing are excessively high, WTI prices tend to trade at a significant discount to Brent crude. Conversely, tight inventory levels can push WTI prices higher.

5. Energy Transition and Environmental Regulations

The growing adoption of electric vehicles and the increasing share of renewable and nuclear energy are structurally weakening long-term demand for gasoline and refined fuels.
In addition, taxes on high-carbon fuels or stricter sulfur-content requirements raise production and distribution costs, which can contribute to higher oil prices.

6. Seasonal Factors

Traditionally, summer is peak travel season, when gasoline demand is highest and prices tend to rise. Winter heating demand also increases crude oil consumption, leading to seasonal fluctuations in oil prices.

7. Geopolitical Risks

Oil is often viewed as a geopolitical tool, and changes in geopolitical conditions can generate sharp risk premiums. Developments in the Middle East, such as security in Persian Gulf shipping lanes, and the evolution of the Russia–Ukraine conflict, are key variables for the oil market. Political instability in countries like Venezuela or production disruptions in Libya, while relatively small in global output terms, can still trigger panic buying during sensitive periods.

8. U.S. Dollar Exchange Rate

WTI crude is priced in U.S. dollars. When the dollar strengthens, oil becomes more expensive for buyers using other currencies, suppressing demand and typically putting downward pressure on prices.

9. Government Policies

Government policy stances can influence oil prices. For example, the Trump administration favored lower oil prices to help control inflation. Such policy signals can exert strong psychological pressure on the market, weighing on oil prices.

10. Natural Disasters or Technical Events

Most WTI refineries are located along the U.S. Gulf Coast. Hurricanes, flooding in the Gulf of Mexico, major pipeline accidents, or refinery shutdowns can disrupt crude supply and lead to sharp short-term spikes in oil prices.

WTI Crude Futures 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

WTI Crude Futures (Not open yet) Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for WTI Crude Futures (Not open yet)Futures.