How ICE Sets Oil Prices in a Two-Minute Window
ICE fixes the daily settlement price for Brent, WTI, Midland WTI AGC and Dubai Crude Futures & Options from trades between 19:28 and 19:30 UK time (14:28-14:30 ET). The window is published in its current trading schedule ICE Trading Schedule.
That two-minute window is the reference point for daily settlement across those crude contracts. It sets the point in the trading day when the official price is taken.
For Brent Crude Futures, ICE says daily settlement is the weighted average price of trades over two minutes from 19:28:00 London time ICE Brent Specifications. Weighted average means larger trades count more than smaller ones, like a final exam counting more than a quiz. Only actual trades in that interval are used.
ICE describes Brent Crude Futures as a deliverable contract based on EFP delivery with an option to cash settle ICE Contract Data. EFP, or exchange for physical, means futures can be swapped for real oil under exchange rules. Cash settlement is the alternative, settling in money with no oil changing hands.
The broader context here is why this detail affects pricing and risk. Averaging by volume softens the effect of any single trade. It also puts the focus on trading inside those two minutes. Anyone managing exposure into settlement must deal in the window or live with the price set there.
In my view, using the same window for Brent, WTI, Midland WTI AGC and Dubai helps work across contracts. A shared time makes it simpler to value spreads, the price gap between two contracts, at the close. It lines up the reference price across grades from different basins with different delivery rules. That cuts timing error when holding Brent against WTI or Dubai-linked positions.
Looking at what this means for delivery, the EFP structure with a cash option leaves two ways out. EFP links paper and physical oil off the screen under exchange rules. Cash settlement ends the contract with a money payment and no barrels moved. For books that cannot handle physical oil, cash avoids practical problems at expiry while EFP keeps a link to physical supply.
Looking at expiry and roll, the design guides what traders do next. Roll means closing a near-term contract and opening a later one to stay exposed to oil prices. Those who want to stay exposed will generally roll or close before delivery rules take hold. Those tied to real oil flows can use EFP to join paper and physical legs. The settlement price connects both uses.
For risk systems, the point is precision. End-of-day profit and loss, margin money put up as security, and curve marking use the settlement price, not the last trade. Mixing closes and settlements adds noise, especially when late trading moves one way. The two-minute weighted average is the contract term to save and use.
When it comes to records, check what your feed actually stores. Confirm it captures the 19:28 to 19:30 UK time print and uses the exchange-published settlement, not a vendor estimate of the close. Small definition gaps add up in backtests and in checks of how well a hedge worked.
