Sentences with phrase «oil contracts sold»

Oil contracts sold on NYMEX can be settled through physical delivery (the oil is delivered to a hub in Cushing, Oklahoma) or settled through cash, which is usually what happens.

Not exact matches

If the oil traders are right, they can make money by buying oil at today's spot price, selling a futures contract for delivery at the higher price expected in the future and storing the oil in the meantime.

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So, in order to hedge against that risk, a supplier of oil may wish to gain some insulation from the price swings inherent to oil and sell a futures contract.

The initial shipping contracts were signed when oil sold for nearly $ US 90 a barrel.

If you fall into the former category then in all candor your best play is probably to sell short crude oil futures contracts as they offer the most direct play on a bearish scenario for crude oil.

NYMEX crude oil is the largest oil futures contract in the world and has a current total open interest of around 1.6 million contracts and it would be impossible for any group of speculators to sell or buy 53 days of world production in a year or longer, no less in a week as just occurred in COMEX silver.

It meant that if someone could buy physical oil and store it cheaply they could make a risk - free annualised return of almost 40 % by simultaneously selling July futures contracts.

For example, if a large speculator who was very bullish on oil bid - up the price of the December - 2016 oil contract from $ 64 to $ 70, it would create an opportunity for other traders to lock - in a profit by purchasing physical oil and selling the December - 2016 futures with the aim of delivering the oil into the contracts late next year.

All oil contracts are sold in U.S. dollars.

For another example, if a large speculator who was very bearish on oil aggressively short - sold the December - 2016 oil contract, driving its price down from $ 64 to $ 60, it would create an opportunity for other traders to lock - in a profit by selling physical oil and buying the December - 2016 futures with the aim of eventually replacing what they had sold by exercising the futures contracts.

While the market benchmark remains West Texas Intermediate crude delivered in Cushing, Oklahoma, there has been a surge in trading of futures contracts tracking the price differences between WTI and oil sold in Gulf Coast ports like Houston and the Permian shale fields near Midland, Texas.

Intended for advanced investors only, oil futures contracts entitle you to buy and sell options to purchase or sell oil (and hopefully profit) based on your predictions of where the market is going.

If this were true then people would buy oil contracts in the summer time allowing them to sell the oil in the winter causing the opportunity to make a quick buck with oil to almost instantaneously equalize.

If WTI crude oil is trading on the spot market for $ 60 and the futures contract expiring two years hence is trading at $ 50, an arbitrage opportunity could exist where one sells the $ 60 spot amount and goes long the $ 50 two - year forward price.

The Businessweek article provides a wonderful illustration: In May 2010, ETFs sold June contracts of crude oil at an average price of $ 75.67 and rolled into July contracts at an average price of $ 79.68.

Let us say, for example, that a forward oil contract for twelve months in the future is selling for $ 100 today, while today's spot price is $ 75.

They sell a futures contract for that oil down the road.

In our example, let us assume that Shell Oil would like to create a futures contract to sell 25,000 barrels of oOil would like to create a futures contract to sell 25,000 barrels of oiloil.