US physical trade month
Overview
When does US physical trade month start and end?
The US physical trade month for crude markets typically starts on the 26th day of the month two months before delivery and ends on the 25th day of the month before delivery – with exceptions.
Why is there a physical trade month?
The US physical trade month for crude markets allows pipeline operators and shippers time at the end of each calendar month to ensure that all volumes are properly scheduled before physical delivery starts on the 1st day of the following calendar month.
What is a crude oil trading day?
Argus defines the trading day by determining at what times the market can be said to contain a fair number of willing buyers and sellers. For US crude oil markets, Argus defines the trading day as follows: 7:00am – 3:00pm CT for the US Gulf coast and midcontinent pipeline markets, and 7:00am – 4:00pm PT for the US west coast pipeline and waterborne markets.
What is a trade month average?
A trade month average of Argus prices is the most common calculation on which term contracts are settled in the US crude industry and is commonly used in many swap futures that settle on Argus prices.
Video: How is the NYMEX roll calculated?
In the US, the crude industry utilizes a physical trade month, that is not based on a typical calendar month nor the Nymex futures contract schedule. After watching this FAQ video, download our 2020 US crude oil trading calendar.
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