In this appendix we describe some of the commonly traded instruments in the primary markets discussed in this book: crude oil and refined products, natural gas, and power. Rather than organizing this appendix by market, given the common nature of many of the instruments, the discussion that follows is organized by class of trade, namely, linear instruments (futures, forwards, and swaps), single-commodity options, and cross-commodity options.

Those experienced in the markets will recognize that many trades that do occur with some frequency are not included in this summary. The purpose here is to clarify the topics in the body of the text, as well as to create a quick reference. The variety of swaps and options that trade in each market is substantial, and details can be obtained through the various exchange websites or directly from trade confirms. In addition, Geman [Gem05] provides a very useful survey of markets and instruments.

Linear Instruments

Benchmark Futures Contracts

Futures contracts are traded by delivery month. The dominant benchmark contracts in energy are West Texas Intermediate (WTI) and Brent for crude oil and Henry Hub, NBP, and TTF for natural gas futures.