While prices are still almost $2 from it, traders need to keep in mind that crude oil does have a lock limit of $10, up or down. In my time in trading, it has never been reached. However, the two-day run-up in prices is so severe that it is possible crude could reach its lock limit price. We are currently trading over $136/barrel.
From the NYMEX website:
| Maximum Daily Price Fluctuation |
 |
| $10.00 per barrel ($10,000 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $10.00 per barrel in either direction. If another halt were triggered, the market would continue to be expanded by $10.00 per barrel in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session. |
