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Delivery point

The exchange-approved location where physical crude/products are delivered or priced for settlement.

The delivery point is the designated location where physical delivery occurs or is referenced for settlement under an oil futures contract. For example, WTI futures are delivered at Cushing, Oklahoma, while Brent-linked contracts reference North Sea delivery points. Delivery points are chosen based on infrastructure, storage capacity, and connectivity to supply and demand centers. Their characteristics can significantly influence pricing, especially during periods of logistical constraint. Even traders who never intend to take delivery must understand delivery point dynamics, as congestion or shortages can distort futures prices near expiry. In physical markets, delivery points also affect freight costs and arbitrage economics. The delivery point anchors the contract to real-world oil flows.

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