CME energy futures reached an all-time high daily volume record of 6.8 million contracts on March 9 topping the previous record of 6.2M on September 16, 2019.
Crude Oil futures (CL) accounted for the bulk of the volume at 4.8M contracts traded, surpassing its previous one-day record of 4.3M contracts. Other energy derivatives such as Natural Gas futures (NG), ethanol, coal and refined products supplied the remainder of the volume.
“Amid global economic uncertainty, market participants around the world continue to turn to CME Group’s energy futures and options for managing their risk,” stated Peter Keavey, CME Group’s Global Head of Energy.
Energy derivatives such as crude oil futures are commonly utilized by traders to both hedge risk in equity exposure as well as diversify their portfolios. Energy is known for being a highly volatile and liquid sector, subject to geopolitical and weather events as well as the forces of supply & demand.
The chart above was created 100% FREE using the NinjaTrader platform and displays trading activity in Crude Oil futures since the start of the year. Yesterday’s volume spike is clearly noticeable. Today oil looks to be paring some of yesterday’s losses, currently trading 7.5% above yesterday’s close.
When trading in live markets, it is vital to maintain proper risk mitigation efforts via the use of protective stops and profit targets.