This video explains the Nymex roll, a calculation that determines the physical price of crude at Cushing using a futures contract price.
What is the Nymex roll?
The Nymex roll is a commonly-used calculation to determine the physical price of crude at Cushing using a futures contract price. For example, for crude delivered to Cushing in February, the closest futures prices still trading are for March and April – the Nymex roll calculates the February value.
What does Nymex mean?
Nymex stands for the New York Mercantile Exchange and is a commodity futures exchanged owned and operated by the Chicago Mercantile Exchange (CME).