Oil futures indicate companies would get lower prices for crude that begins flowing in 12 to 18 months.
What is an example of a futures oil market?
For example, when the crude oil spot price (actual price) is stated on the physical market and if the futures oil price on this specific crude oil category is higher, an investor can fairly accurately estimate the demand and offer for oil for a specific time horizon. It is important to note that not all futures markets behave in the same way.
Why are gas and crude oil futures trading so risky?
Because they think there is a way to control the maddening swings in gas prices. Natural gas and crude oil futures trading can be very complex. They experienceextreme volatility and are risky compared to most other investments. Commodity futures trading is a skill that requires mastery.
