I heard the actual number is around 2-4% as well. Its a great market when you have so much liquidity ready willing to take the other side of a trade. Love to see how absorbing that liquidity and eliminating risk-takers will help the public overall. Hedgers NEED speculators.. period.
There is a total misconception by the politicians, the public and less experienced traders that a contract with a high delivery ratio would be better for all. That would mean that commercials would totally dominate the market. I would be surprised even if more then .5% was settled with physical delivery. The lower the ratio (higher intra day liquidity) the healthier the market. And the crude market is very very liquid.
Futures are generally not used to get products delivered, but to hedge risk. Thus you would expect most not to go to delivery. People who want delivery generally use the cash market. Thus, farmer Zeke hedges his corn crops in the CBOT futures, then come harvest he has a choice - undertake the hassle of meeting the delivery specs, then pay the cost to transport it to Chicago; or close out his short, sell his corn in the local cash market, and achieve pretty much the same result but a lot cheaper and easier. In both cases the risk was hedged, which is what one of the CBOT contract's economic functions is. Zeke never wanted to sell corn in Chicago but by using the future he locked in his prices as desired. That's one reason why low deliveries is not a bad thing, and does not mean the market is dominated by speculation.