Delivery point (futures trading)

From Wikipedia, the free encyclopedia
Jump to: navigation, search

In a futures contract where the underlying is a physical object, such as grain or oil, the price of the futures contract is quoted assuming delivery of that physical object to a specific physical location in the world.[1] For instance, natural gas futures in the United States usually have the Henry Hub as a delivery point,[2] and gold may have a delivery point of New York or London. Futures contracts that differ only in the delivery point will typically have slightly different prices, reflecting localized supply and demand and transportation costs.[citation needed]

West Texas Intermediate crude oil has a delivery point to Cushing, Oklahoma.