Nymex Applies To Expand Energy Price Limits

The New York Mercantile Exchange today announced that it had applied to the Commodity Futures Trading Commission to expand the back month price limits for its light, sweet crude oil; heating oil; New York Harbor gasoline; and Henry Hub natural gas futures contracts. Under the amended rules, the initial price limit for all but the first two months of the crude oil contract would increase from $1.50 to $3.00; in heating oil and New York Harbor gasoline, that limit would change from $.04 to $.06; and in Henry Hub natural gas, it would expand from $.15 to $.30. If any of the back months in these contracts settle at those limits, on the following day, the new limits for that contract would increase to $6.00 in light, sweet crude oil futures; $.09 in heating oil and New York Harbor gasoline; and $.60 in Henry Hub natural gas. Currently, the expanded limits are at the level of the new initial limits. The Exchange expects to receive approval in time to implement the new limits by the end of the month.