Trading Crude Oil Futures: CL, MCL and the Weekly EIA Report
CL and MCL specs, what the weekly EIA report measures, when crude moves most, and sizing math that allows for slippage.
Trading crude oil futures means trading CL, 1,000 barrels of WTI with a $10 tick, or MCL, the 100 barrel micro with a $1 tick. Crude is fast and driven by news and supply data. It often moves hardest around the weekly EIA inventory report, usually Wednesday at 10:30am New York time. That makes sizing and timing more important here than in most futures markets.
Key takeaways
- A $1 move in crude is $1,000 on one CL and $100 on one MCL.
- The EIA weekly report can move price many ticks in seconds, and stops can fill well past their price.
- Crude has a new contract every month, so you roll twelve times a year.
- On most prop accounts, MCL lets you use a stop that fits crude’s volatility without breaking the daily limit.
CL and MCL contract basics
| Detail | CL | MCL |
|---|---|---|
| Size | 1,000 barrels | 100 barrels |
| Tick size | $0.01 per barrel | $0.01 per barrel |
| Tick value | $10 | $1 |
| Value of a $1 move | $1,000 | $100 |
| Settlement | Physical delivery | Cash settled |
| Venue | NYMEX | NYMEX |
Example figures: with crude at $70 a barrel, one CL controls $70,000 of oil and one MCL controls $7,000. A move from $70.00 to $71.50 is 150 ticks, worth $1,500 on CL and $150 on MCL.
Crude trades on Globex from Sunday 6pm to Friday 5pm New York time, with a daily break from 5pm to 6pm. Each CL contract stops trading three business days before the 25th of the month before its contract month. So the roll comes around the middle of every month. Our guide to futures rollover explains the timing and why you never want to hold an expiring CL contract.
The weekly EIA report and other scheduled events
The US Energy Information Administration publishes its Weekly Petroleum Status Report, usually on Wednesday at 10:30am New York time. After a Monday holiday it usually moves later in the week, so check the EIA release schedule.
The report covers the prior week. The figures traders watch most are:
- The change in commercial crude oil inventories.
- Changes in gasoline and distillate inventories.
- Stocks at Cushing, Oklahoma, the delivery point for CL.
- Refinery utilization, production, imports and exports.
Price reacts to the surprise against expectations, not the number alone. A large inventory build can still lift price if the market expected a larger one. Traders also read the details, so the first move is often reversed within minutes as gasoline or Cushing figures sink in.
Other scheduled events matter too. The American Petroleum Institute publishes its own inventory estimate on Tuesday afternoon, usually 4:30pm New York time. OPEC+ meetings and statements can move price sharply. The Baker Hughes rig count comes out on Friday afternoon. Major US data, such as CPI and payrolls, moves crude through the dollar and risk sentiment.
When is crude most volatile?
Crude’s busiest hours usually run from the US morning to the daily settlement, around 2:30pm New York time. The EIA release and the first hour of the US day often bring the largest bursts. Overnight, the book is thinner, so the same headline can move price further on less volume.
Crude also reacts to unscheduled news: supply disruptions, sanctions, conflict and comments from producer countries. These headlines arrive without warning. A stop that is fine for a normal hour can be too tight when a headline hits.
The safest way to handle volatility is to measure it. Use the ATR on your trading time frame, and set your stop as a multiple of it. Then size from that stop. Do not use a fixed number of ticks for every day.
Sizing math for CL and MCL
Example figures: your risk per trade is $200.
| Stop | Loss per CL | Loss per MCL | Size for $200 |
|---|---|---|---|
| 15 cents (15 ticks) | $150 | $15 | 1 CL, or 13 MCL for $195 |
| 25 cents (25 ticks) | $250 | $25 | No CL; 8 MCL for $200 |
| 40 cents (40 ticks) | $400 | $40 | No CL; 5 MCL for $200 |
Contracts = risk per trade ÷ (stop in ticks × tick value)
Now add slippage. Say you hold 5 MCL with a 40 cent stop, and a headline hits. The stop triggers, but the fill comes 15 cents further away, at 55 cents. The loss is 55 × $1 × 5 = $275, which is $75 more than planned. On 1 CL at the same fill, the loss would be 55 × $10 = $550.
In crude, plan for slippage on top of your stop. A buffer of a third or more of your risk is sensible when news is due.
An example plan for EIA Wednesdays
This is one way to handle the report, shown as an example to test. It is not a strategy with a known edge.
- Be flat by 10:25am New York time. Cancel resting orders near price.
- Do not trade the first move. Wait for the 10:30am to 10:35am bar to close.
- Mark that bar’s high and low. If its range is wider than your stop budget allows at one MCL, skip the day.
- Trade a break of that bar with the stop at its opposite end, sized for the full width.
- Close the trade by 11:30am, or earlier at a 2R target.
Many traders simply avoid crude on report mornings. That is a valid choice. See our guide to trading high impact news for the wider approach.
How this fits prop firm rules
- News rules: some firms restrict trading around major releases. Check whether the EIA report is on the firm’s list.
- Daily loss limit: slippage counts. A stop that fills 15 cents late on CL costs an extra $150 per contract.
- Trailing drawdown: a fast spike in your favor can lift an intraday trailing floor before price snaps back.
- Contract caps and products: CL usually counts as a full size contract. Some firms set separate limits for energy.
- Expiry: firms may close or block positions in the expiring month before the last trading day.
Rules vary by firm; check each firm’s page on PropFirmXchange in the prop firm directory. To compare accounts that allow energy futures, use find an account.
Questions traders ask
What time is the EIA crude oil report?
Usually Wednesday at 10:30am New York time. Holiday weeks can move it later, so check the EIA schedule.
Is MCL a good contract for beginners?
It is the better of the two for small accounts, because each tick is $1. Crude itself is still a fast market, so start with small size.
Can I hold crude oil futures to expiry?
Not CL, unless you can take delivery of physical oil. Retail and prop traders roll or close before the last trading day.
Trading crude oil futures carries a high risk of loss, and news can move price past your stop. Most prop firm accounts are simulated. Nothing here is financial advice.