Considerations for institutional purchasers of oil futures

P

panaceus

Suppose a company were interested in purchasing a large quantity of crude oil futures, with the intention of taking delivery. What might they need to consider that isn't an issue for retail traders? Transport is presumably one of these.

Is there a size at which an open-market purchase might no longer be advisable? I'd appreciate direction to any resources on these topics.
 
Anyone that is looking to take delivery of "a large quantity of crude oil" will understand the logistics involved including who to contact to make the arrangements for pick up, delivery and storage.
 
rmorse said:
Anyone that is looking to take delivery of "a large quantity of crude oil" will understand the logistics involved including who to contact to make the arrangements for pick up, delivery and storage.
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I am certain that they would:) However I do not, beyond some knowledge of Incoterms. I'd like to familiarize myself a little bit if possible.
 
If your FCM is one that facilitates delivery, you can contact them. Maybe they can recommend some informational resources. You can also contact the exchange. There is someone there who's job it is to help with this type of information.

"For more information on our energy products visit cmegroup.com/WTI or e-mail energy@cmegroup.com."

Bob
 
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