Geopolitical tensions in the Middle East, ongoing production cuts and uncertain demand made for a volatile third quarter, turning energy traders to the options market. 

Built on the global benchmark for crude oil, WTI (LO) options average daily volume (ADV) reached 207K contracts, up 40% from Q3 2023. With expirations available every day of the trading week, WTI Weekly options had their highest ADV ever in September at 27K contracts, with over 54K in average open interest (AOI). 

In the Natural Gas market, Henry Hub (LN) options ADV finished Q3 up 42% from the same time period last year, with AOI over 4M contracts. 

Traders are executing options strategies on CME Direct, the top trading platform for Energy options volume — and home to the only liquid screen market for Natural Gas options.

CME Direct offers professional traders access to unparalleled options liquidity alongside advanced functionality and analytics. You can seamlessly execute Request for Quote (RFQ) strategies, create a tailored, enhanced options trading grid and view live market activity all on a single screen. Plus, utilize TrendSpider, designed to make charting and analysis more fluid and effective, so you can quickly make trading and risk management decisions.

The addition of WTI to the Dated Brent Index made U.S. crude oil price exposure to the global marketplace more evident than ever. Consequently, interest in North American Crude Grade futures, which provide the best liquidity for Gulf Coast crude oil and trade as a differential to WTI, is breaking records. In September, AOI reached over 725K contracts. As a result, more traders are turning to CME Direct. This platform offers complimentary, real-time pricing data across North American and global Crude Oil futures, options and blocks, making it an attractive choice for market participants.

Historically, La Niña causes warmer winters in the south, colder winters in the north, droughts in some regions and wetter, more severe weather in others. 

As an umbrella, we offer Weather futures and options on 18 cities across the globe; 13 throughout the U.S., four in Europe and one in Asia. So whether it's a heat wave in Paris or a cold snap in Portland, your risks are covered.

In September 2024, average daily volume across Weather futures and options was 1.7K, up 40% from September 2023, and current open interest is 101K. Last month, the most active cities included Dallas, Amsterdam, Cincinnati, New York and Chicago.

Add precision to your portfolio with new Henry Hub Natural Gas Weekly (HHW) futures. Capture inter-month price movements with greater precision when hedging volatility arising from weather, EIA reports or geopolitical events.

^{*Pending regulatory review}

Join us at the Wood Mackenzie Gas, LNG and the Future of Energy conference in London on October 22. Our team, alongside fellow panelists, will be discussing how the value of gas and LNG trading is evolving as prices go down. After a day of learning, enjoy an evening with your peers at the drinks reception, sponsored by CME Group.

The opinions and statements contained in the commentary on this page do not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs. This content has been produced by [Data Resource Technology]. CME Group has not had any input into the content and neither CME Group nor its affiliates shall be responsible or liable for the same.

CME GROUP DOES NOT REPRESENT THAT ANY MATERIAL OR INFORMATION CONTAINED HEREIN IS APPROPRIATE FOR USE OR PERMITTED IN ANY JURISDICTION OR COUNTRY WHERE SUCH USE OR DISTRIBUTION WOULD BE CONTRARY TO ANY APPLICABLE LAW OR REGULATION.