In a futures contract where the underlying is a physical object, such as grain or oil, the price of the futures contract is quoted assuming delivery of that physical object to a specific physical location in the world.
[1] For instance, natural gas futures in the United States usually have the Henry Hub as a delivery point,[2] and gold may have a delivery point of New York or London.
Futures contracts that differ only in the delivery point will typically have slightly different prices, reflecting localized supply and demand and transportation costs.
[citation needed] West Texas Intermediate crude oil has a delivery point to Cushing, Oklahoma.
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