Sentences with phrase «oil futures contracts»

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.
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.
Read about a few strategies to limit the risk in trading oil futures 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.
In 2017, oil futures contracts in New York and London outstripped physical trading by a factor of 23.
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.
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.
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.
With an oil ETF or oil mutual funds, you get a basket of oil company stocks or oil futures contracts in one fund.
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.
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...
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.
Case in point: Only about 2 % of oil futures contracts are actually settled through physical delivery.
For this reason, Grantham's firm has aggressively purchased and hopes to profit from oil futures contracts.
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.
The most notable is that China last Monday launched its own crude oil futures contract.
The Shanghai oil futures contract is similarly designed to wrest some control over pricing from the main benchmarks in New York and London — West Texas Intermediate (WTI) and Brent — and to promote the use of the yuan, also known as the renminbi.
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.
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.
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.
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.
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.
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.
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.
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.
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.

Not exact matches

The energy market could have a new benchmark oil price when Dubai launches its Middle East sour crude futures contract as an alternative to New York's NYMEX light crude oil futures and London's IPE Brent crude oil.
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 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.
CNBC's Jackie DeAngelis reports on commodities as several options and futures contracts expire Friday, and the factors supporting the price of oil.
The Bloomberg WTI Crude Oil Subindex is a single commodity subindex of the Bloomberg CI composed of futures contracts on crude oOil Subindex is a single commodity subindex of the Bloomberg CI composed of futures contracts on crude oiloil.
Benchmark crude futures contracts have in the past week wiped out the gains made since the end of September when the Organization of the Petroleum Exporting Countries said it would agree to cut oil production to shore up persistently low prices.
Oil fund managers are not betting on $ 20 a barrel oil this week because they increased their net - long position by 16,855 contracts to 132,857 futures and options in the week ending Sept. 8, according to the CFTC commitment of traders repoOil fund managers are not betting on $ 20 a barrel oil this week because they increased their net - long position by 16,855 contracts to 132,857 futures and options in the week ending Sept. 8, according to the CFTC commitment of traders repooil this week because they increased their net - long position by 16,855 contracts to 132,857 futures and options in the week ending Sept. 8, according to the CFTC commitment of traders report.
The investment bank argues that the backwardation exhibited in the Brent futures market — a situation in which near term oil contracts trade at a premium to futures dated further out — is a clear sign that the market is on its way to rebalancing.
The futures are designed to reflect the price of bitcoin without an investor having to physically hold the virtual currency, not unlike how oil, gold, copper or cocoa prices are determined by futures contracts.
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.
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.
An oil future is a contract between two people: a buyer and a seller.
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
Let's say you are bullish on Crude Oil and looking to buy a futures contract, but the rest of your portfolio is full of energy stocks.
During this same period, activity on the crude oil futures market — as measured by the number of contracts outstanding, trading activity, and the number of traders — has increased significantly.
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.
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