Some of the energy and oil ETFs might not track oil's price movements accurately if the fund is
buying oil futures contracts rather than stock in individual oil and energy - related companies.
The fund's strategy seeks to outperform certain index ‑ based strategies by actively managing the rolling of
crude oil futures contracts.
The world's biggest energy importer launched its yuan - denominated
oil futures contract on Monday — a move that some say could sound the spell the end of...
Local media have reported that China could launch a crude
oil futures contract priced in yuan as early as Jan. 18, although analysts and industry executives who spoke to Breakingviews believe a later start is more likely.
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.
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.
ETFS WTI 2 mth (OILW) is designed to deliver a total return, which consists of the excess return generated
by oil futures contracts plus accrued interest.
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.
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.
According the Intercontinental Exchange (ICE), since March 2012, ICE Brent has been the world's largest crude
oil futures contract with annual volume reaching a record 159 million contracts in 2013, doubling market share since 2008.
Trading halts and price limits for this contract are subject to the provisions governing Special Price Fluctuation Limits for NYMEX Light Sweet Crude
Oil Futures contract set forth in Chapter 200.
The investment objective of USO is for the daily changes in percentage terms of its shares» NAV to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in price of USO's
Benchmark Oil Futures Contract, less USO's expenses.
A possible game changer is the Petro - yuan, the Chinese government's plans to start a crude
oil futures contract priced in yuan and convertible into gold.
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.
«Brent North Sea crude for July delivery rose 42 cents to 69.84 dollars in electronic trading... On Monday, New York's
main oil futures contract, light sweet crude for delivery in June, gained 21 cents to 65.15 dollars a barrel in electronic deals
The NYMEX West Texas Intermediate Crude Oil Generic Front Month Futures (Oil Index)(not available in all jurisdictions) is the underlying commodity index
of oil futures contracts.
As the yuan progressively reaches full consolidation in trade settlement, the petro - yuan threat to the US dollar, inscribed in a complex, long - term process, will disseminate the Holy Grail:
crude oil futures contracts priced in yuan fully convertible into gold...
The plan is to launch
an oil futures contract on the Shanghai International Energy Exchange (INE), but there are obstacles in convincing large oil producers and consumers in using the yuan and investing in the Shanghai benchmark.
In case you are not familiar with it, $ USO is a commodity ETF that approximately tracks the price of crude
oil futures contracts.
For example, the fact that at the time of writing the price of the December - 2016 WTI Crude
Oil futures contract is $ 64.44 does not imply that «the market» expects the price of oil to rise from around $ 59 (the current spot price) to around $ 64 by the end of next year.
It marks the first time overseas investors have been able to access a Chinese commodity market —
an oil futures contract — that can be settled, not only with U.S. dollars, but also Chinese Yuan, eventually a basket of currencies... and gold.
The Shanghai International Energy Exchange is launching a crude -
oil futures contract that's denominated in Yuan.
Futures contracts are priced to include the storage costs, so according to the theory of storage equation, one is indifferent between buying
an oil futures contract or buying physical oil and storing it until the time of expiration of the contract.
For example, if
a oil futures contract is for $ 100,000, an investor can enter into that position by posting only $ 5,000 of initial margin.
The most common oil ETN is OIL, which invests in
oil future contracts.
The index reflects the returns that are potentially available through an unleveraged investment in the West Texas Intermediate (WTI) crude
oil futures contract plus the Treasury Bill rate of interest that could be earned on funds committed to the trading of the underlying contracts.
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 Bills.
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 Index is a sub-index of the S&P GSCI ® Commodity Index and reflects the returns that are potentially available through an unleveraged investment in the West Texas Intermediate (WTI) 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.
The fund's strategy seeks to outperform certain index ‑ based strategies by actively managing the rolling of WTI crude
oil futures contracts to (a) mitigate the negative impact of contango, or (b) benefit from the backwardation present in the WTI crude oil futures markets, but there can be no guarantee that it will be successful in doing so.
The fund's strategy seeks to outperform certain index - based strategies by actively managing the rolling of WTI crude
oil futures contracts to (a) mitigate the negative impact of contango, or (b) benefit from the backwardation present in the WTI crude oil futures markets, but there can be no guarantee that it will be successful in doing so.
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.
Margins for the NYMEX miNY crude
oil futures contract will rise to $ 3,625 from $ 3,250 for clearing members, to $ 3,988 from $ 3,575 for members and to $ 4,894 from $ 4,388 for customers.
Today, oil speculators purchase 66 percent of
all oil futures contracts, and that reflects just the transactions that are known.
Phrases with «oil futures contract»