While industrial buyers like refiners may take physical delivery, most retail and speculative traders use cash-settled contracts or close their positions before the expiration date to avoid receiving actual barrels of oil. Strategic Objectives: Hedging and Speculation
There are two primary reasons to buy oil futures: risk management and profit seeking. How to Interpret Wartime Oil Prices - CSIS buy oil futures
The following essay explores the mechanics, strategic reasons, and significant risks associated with buying oil futures in the current economic landscape. While industrial buyers like refiners may take physical
Traders primarily use two benchmarks: West Texas Intermediate (WTI) , traded on the NYMEX , and Brent Crude , traded on the ICE. traded on the NYMEX