Sentences with phrase «oil futures contract for»

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.

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

Not exact matches

For this reason, Grantham's firm has aggressively purchased and hopes to profit from oil futures contracts.

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.

The contract is an agreement, or promise, for the buyer to purchase oil at a certain price in the future (the spot price) at a certain date in the future (the contract's maturity) from the seller.

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

Using intraday and daily prices of the most active rolling futures contracts for the S&P 500 Index, gold and light crude oil during 1987 through 2012, they find that: Keep Reading

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.

While the official goal of the new futures contract is to establish a regional benchmark for more useful pricing of the crude grades prevalent on the Chinese market, analysts see the yuan oil futures as a step toward China seeking wider acceptance of its currency in global trade, including the oil trade, and establishing a petro - yuan that could challenge, in the future, the dominance of the petrodollar.

OPEC, especially its Middle Eastern producers, will be closely watching the futures contract because once established, the Chinese reference crude price could act as a regional benchmark for negotiations of spot or term crude oil prices.

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 yeFor 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 yefor 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.

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 contracFor 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 contracfor 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.

Crude oil futures in the June contract settled last Friday in New York at 67.33 a barrel while currently trading at 68.35 up about a $ 1 for the trading week hitting a 3 1/2 year high & in yesterdays trade prices went up as high as 69.55 before profit - taking ensued.

First let's define some data, when I say Oil I am referring to the WTI Crude Futures, Continuous Contract # 1 and for the U.S.D. I am using the Trade Weighted U.S. Dollar index (https://research.stlouisfed.org/fred2/series/DTWEXM).

Bets on oil futures reached 1.47 million contracts for the week ending on November 15, the largest trading volume in nearly a decade.

An exporter to China using RMB oil futures could, for example, use a separate futures contract to swap the renminbi for gold.

The first futures contracts were for commodities such as wheat and corn, and they're available for many commodities now, including oil and natural gas.

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.

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.

The last trading day of oil futures, for example, is the final day that a futures contract may trade or be closed out prior to the delivery of the underlying asset or cash settlement.

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.

The contract grade for delivery on futures contracts made under these rules shall be Crude Soybean Oil which conforms to the following specifications:

One of the classic examples for investments catered with futures contract is oil.

For example: Company A enters into a forward contract to buy 1 million barrels of oil at $ 70 / barrel from company B on a future date.

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 margFor example, if a oil futures contract is for $ 100,000, an investor can enter into that position by posting only $ 5,000 of initial margfor $ 100,000, an investor can enter into that position by posting only $ 5,000 of initial margin.

A futures contract is an offer to purchase a set amount of oil for a set price at a future date.

For example: 5,000 bushels of corn, 1,000 barrels of crude oil or Treasury bonds with a face value of $ 100,000 are all contract sizes as defined in the futures contract specification.

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.

For investors seeking exposure to crude oil but looking to avoid investing in futures contracts, the stocks of oil producing companies may present an interesting opportunity to establish indirect exposure.

Futures contracts, traded under the symbol CL, represent 1,000 barrels of oil for delivery at any pipeline or storage facility in Cushing, Oklahoma with pipeline access to TEPPCO, Cushing storage or Equilon Pipeline Company LLC Cushing storage.

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.

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.

United States Oil Fund (USO), for instance, tries to track the spot price of light, sweet crude oil by buying oil - futures contracOil Fund (USO), for instance, tries to track the spot price of light, sweet crude oil by buying oil - futures contracoil by buying oil - futures contracoil - futures contracts.

The first futures contracts were negotiated for agricultural commodities, and later futures contracts were negotiated for natural resources such as oil.

For example, a crude oil contract futures contract is 1,000 barrels of oil.

This article is about prices for futures contracts on a specific kind of oil.

USO also invests in oil via futures contracts and as such suffers from having to pay a premium for the time value of the contract, this is known as cantango.

The contango exhibited in Crude Oil in 2009 explains the discrepancy between the headline spot price increase (bottoming at $ 35 and topping $ 80 in the year) and the various tradeable instruments for Crude Oil (such as rolled contracts or longer - dated futures contracts) showing a much lower price increase.

The New York Mercantile Exchange said on Tuesday it will increase margins for its crude oil and related futures contracts, beginning at the close of business on Wednesday.

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.

Using the same futures contract at the same price, quantity, and expiry, the hedging requirements for both the soybean farmer (producer) and the soya oil manufacturer (consumer) are met.

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

Notable examples include acting for accountants in long - running litigation arising out of a failed tax avoidance scheme; acting for the developer and manufacturer of an offshore drilling system following an accident in operation; representing one of the Defendants in Novoship v Mikhaylyuk & Others, concerning allegations of bribery and secret profits; appearing in a substantial LCIA arbitration about the theft of oil stocks in East Africa;, successfully representing a broker in litigation against a former client under a futures brokerage contract in Sucden v Fluxo - Cane [2010] 2 CLC 216; and The «Ekha» [2011] 1 All ER Comm 1077, long - running litigation in the Commercial Court and Court of Appeal about an offshore drilling contract.

The buyer of the contract can settle for the product itself such as oil barrels or liquid cash when the future contract comes to an end.

This is important because if you enter into a contract for 25 crude oil futures, then you are actually purchasing 25,000 barrels.

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

MBF Commodities Corp., New York NY 1998 — Present Commodities Trader Handled marketing for natural gas futures, crude oil futures, and crude oil options contracts.