Sentences with phrase «month oil futures contract»

For instance, purchasing a 24 - month oil futures contract for $ 80 means you agree to purchase oil at $ 80 a barrel 24 months from now, regardless of what the price of oil is at that time.

If you invest in a fund that always buys one - month oil futures contracts, for instance, and that fund has to pay $ 2 more than the spot price for them, the fund will essentially lose $ 2 per barrel each month when they roll their futures contracts.

Not exact matches

The roll yield is the profit traders can earn when they roll their investment in crude oil futures, which expire every month, into contracts that expire at a later date.

For example, you could purchase a futures contract to buy oil at $ 95 per barrel with a delivery date three months from now.

The market is still in a state of contango, in which front month contracts are cheaper than oil futures further out.

Investors may be so concerned about higher prices in the future that they're willing to pay $ 102 per barrel now for a contract that promises to deliver oil one month from today.

All of the PowerShares DB Crude Oil ETNs are based on a total return version of the Deutsche Bank Liquid Commodity Index — Oil, which is designed to reflect the performance of certain crude oil futures contracts plus the returns from investing in 3 month United States Treaury BilOil ETNs are based on a total return version of the Deutsche Bank Liquid Commodity Index — Oil, which is designed to reflect the performance of certain crude oil futures contracts plus the returns from investing in 3 month United States Treaury BilOil, which is designed to reflect the performance of certain crude oil futures contracts plus the returns from investing in 3 month United States Treaury Biloil futures contracts plus the returns from investing in 3 month United States Treaury Bills.

The underlying asset in this case is the crude oil futures contract for the current front - month.

Trading in the current delivery month shall cease on the business day immediately preceding to the last day of trading in the current delivery month of the NYMEX Light Sweet Crude Oil futures contract.

The Floating Price for each contract month will be equal to the Light Sweet Crude Oil Futures contract final settlement price for the corresponding contract month on the last trading day for the E-mini Crude Oil Futures contract month.

What happens is that oil futures contracts in contango are more expensive in future months meaning the USO needs to pay more to roll its contracts forward.

Due to the use of futures contracts, many oil ETPs make for poor long - term investments because they can expose investors to contango by using front - month futures.

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.

An airline expecting the price of oil to rise, buys a three - month futures contract for 1,000 gallons at current prices.