CRUDE OIL FUTURES (CL)
Plain English
Crude oil is the world's most important commodity. Oil futures move on OPEC decisions, US inventory data (released every Wednesday), geopolitical tensions, and economic growth data. WTI (West Texas Intermediate) is the US benchmark; Brent is the global one.
Going deeper
Crude oil futures (CL) on NYMEX represent 1,000 barrels of West Texas Intermediate (WTI) crude oil. Monthly expirations. Tick size: $0.01/barrel = $10/contract. Key drivers: OPEC+ production decisions, EIA Weekly Petroleum Status Report (every Wednesday 10:30 AM ET — significant market mover), US strategic petroleum reserve activity, geopolitical events in the Middle East and Russia, USD strength (oil priced in dollars), and global economic growth (demand). Brent Crude (ICE) is the international benchmark, typically trading $2-5 above WTI. The oil market is massive ($100+ billion daily volume) with significant manipulation risk from state actors.
Examples
EIA Report Volatility
Analysts expect crude inventory to build 2 million barrels. The EIA report shows a draw of 5 million barrels (surprise draw = bullish). Oil spikes $2 in minutes. A single CL contract gains $2,000 instantly. Traders position ahead of these weekly reports.
Geopolitical Premium
Tensions escalate in the Strait of Hormuz, through which 20% of world oil flows. WTI spikes from $75 to $85 in two days. When the threat de-escalates, oil retraces. This 'geopolitical risk premium' builds in and unwinds rapidly.