Sentences with phrase «oil spot futures»

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.

The oil market remains in what's known as contango — with the future price of crude trading at a higher level than today's spot price.

Next, since oil for future delivery is currently trading for more than the spot price, a situation traders call «contango», selling into the futures market is a financial win for producers.

Contango, a market situation in which the spot prices are lower than future prices, encourages traders to store crude oil and profit from selling it at prices higher than the spot market.

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.

Specifically, they relate spot West Texas Intermediate (WTI) crude oil price to: the U.S. dollar exchange rate versus a basket of developed market currencies; Dow Jones Industrial Average (DJIA) return; U.S. short - term interest rate; the S&P 500 options - implied volatility index (VIX); and, open interest in the NYMEX crude oil futures (as an indication of financialization of the oil market).

They include as potential influencers three other precious metals futures, crude oil spot and futures, two commodity indexes, U.S. and world stock indexes, currency exchange rates, 10 - year U.S. Treasury note (T - note) yield, U.S. Federal Funds Rate (FFR), a volatility index (VIX) and U.S. and world consumer price indexes.

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.

If this isn't the case and all the oil being produced is needed for current consumption, then the price of oil for future delivery can drop to an unusually low level relative to the spot price and stay there.

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.

Before rushing to buy a futures contract or calling your broker about spot prices, consult the following beginner's guide to investing in oil (including which type of investors are best suited to do it, and how much of your portfolio oil should comprise).

Think about it this way, if oil will be worth less in the future then it should be worth less now to the people that can store oil so the spot price should go down.

The investment seeks to replicate, net of expenses, the daily changes in percentage terms of the spot price of Brent crude oil as measured by the changes in the price of the futures contract on Brent crude oil as traded on the ICE Futures Exfutures contract on Brent crude oil as traded on the ICE Futures ExFutures Exchange.

The energy and materials sectors have been the sore spot for the high yield market, given the anxiety over credit quality, as current low prices in oil and commodities, along with a Fed increase in rates, may be a cause for concern for future earnings and the cost of capital.

In a decade plagued with high inventory, this has cost crude oil futures investors an additional 48 % beyond the -37 % lost in the spot market.

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.

To investigate, we relate the return series of three exchange - traded funds: (1) the futures - based PowerShares DB US Dollar Index Bullish (UUP); (2) the spot - based SPDR Gold Shares (GLD); and, (3) the spot - based United States Oil (USO).

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.

Early this year, the six - month futures price for oil was US$ 20 higher than the spot price.

For example the price of oil indexes based on oil futures may differ from the «spot price» for oil.

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.

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.

Chevron's new advertising campaign represents the oil giant's latest attempt to stake out a spot in the debate over future energy supplies.

«Forecasting the conditional volatility of oil spot and futures prices with structural breaks and long memory models.»