CL futures explained: what moves crude oil, and when to watch
CL is 1,000 barrels of US crude oil in one contract. It reacts to wars, weather and a weekly government report every Wednesday morning.
At a glance
| Item | CL (WTI crude oil) |
|---|---|
| What it is | A futures contract for 1,000 barrels of WTI (West Texas Intermediate) crude oil |
| Tick size | $0.01 per barrel |
| One tick is worth | $10.00 ($1,000 per $1 move) |
| Busiest hours (ET) | 9:00 am–2:30 pm, and 10:30 am on Wednesdays |
| What moves it most | Weekly US oil stock data, OPEC+ decisions, world growth, conflicts |
| Trading hours | Sunday 6 pm to Friday 5 pm ET, daily break 5–6 pm ET |
Check cmegroup.com for current specs.
What moves it
Oil is a real thing people burn. So supply and demand news moves it directly.
- The weekly oil report. The US Energy Information Administration (EIA) publishes US oil stocks on Wednesdays at 10:30 am ET (moved a day when there's a holiday). A surprise build or draw can move CL fast.
- The API report. An industry group publishes its own estimate on Tuesdays at 4:30 pm ET. Traders often treat it as a preview.
- OPEC+. The big oil-producing countries meet and decide how much to pump. A change in their plan can reset the price.
- Conflict and shipping. Trouble near oil fields or shipping routes can push oil up in minutes.
- World growth. When people expect a slower economy, they expect less oil to be used.
- The US dollar. Oil is priced in dollars, so dollar moves matter too. It also links to the Canadian dollar, since Canada exports a lot of oil.
When it's busiest
- 9:00 am–2:30 pm ET: the main US session, where most volume trades.
- Wednesday 10:30 am ET: the EIA report. Candles often get very big right here.
- Overnight: thinner, though news from the Middle East or Asia can still move it.
ET hours stay the same through the year, since CME uses Chicago time. Europe's open shifts in ET for a few weeks when daylight saving dates differ.
Its personality
- Spiky. Oil reacts to headlines. One news line can produce a long candle in seconds.
- Trends on supply stories. When a supply change sticks, oil can trend for weeks.
- Monthly expiry. CL contracts expire every month, not every quarter. Most traders roll to the next month well before expiry.
- Physical delivery. CL is settled by delivering real oil at Cushing, Oklahoma. Retail traders should be out before that. In April 2020, the expiring contract briefly settled below zero because holders had nowhere to store oil.
- Weekend gaps. News on Saturday shows up on Sunday's open.
Reading it with our method
Start on the daily and 4-hour charts. Mark the last places price turned around. Note the direction. Then drop to your entry chart.
On CL, the body-close rule saves a lot of grief. A 10:30 am Wednesday spike often leaves long tails both ways. Wait for a candle body to close past the level.
Size from the stop. Example: your stop is $0.40 away. That's 40 ticks × $10 = $400 for one CL. If your plan says $100, CL is too big. On the micro, MCL, the same stop is $40. Use the futures tick value calculator. A math example, not a promise.
Common mistakes
- Holding a position into 10:30 am Wednesday without meaning to. Check the economic calendar every week.
- Staying in the expiring month. Know your contract's last trading day.
- Stops that fit a quiet market. Oil's normal swing can hit a tight stop on noise.
- Trading headlines. By the time you read the news, the first move has often happened.
Questions
How much is one tick on crude oil futures worth?
For CL, one tick is $0.01 per barrel on 1,000 barrels, which is $10. A $1 move is $1,000 per contract.
What time is the oil inventory report?
The EIA's weekly US oil stocks report comes out Wednesdays at 10:30 am ET, shifted when there's a federal holiday.
Do I have to take delivery of oil?
CL can be settled by physical delivery, so traders who don't want oil close or roll before the last trading day. Your broker will usually warn you or close it for you.
Is there a smaller oil contract?
Yes. MCL, Micro WTI crude, is 100 barrels: one tenth of CL, $1 a tick.
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