“In an oil futures market, we market the future of oil. The price of petroleum products, especially fuel oil, jet fuel, and gasoline today is mostly determined by speculators of the price of oil tomorrow.”
– Roland Louis Hansen
“Noun 1. oil future – petroleum bought or sold at an agreed price for delivery at a specified future date”
ref: oil future, Thesaurus, The Free Dictionary
An oil future is an investment instrument used to speculate on whether the price of oil will rise or fall. Technically, the term “oil future” refers to a “future contract” whose holder agrees to buy oil at a prearranged date in the future at a price that’s agreed upon today. Trading in oil futures is closely watched not just by oil traders themselves but also by investors throughout the financial markets, because futures prices are a good indication of the future price of oil, and the price of oil has a huge impact on the economy.
Read more: Definition of Oil Futures | eHow.com
Roland’s Ramblings also has some other recommended reading for you; just click and go:
How does oil speculation raise gas prices? from HowStuffWorks.com.
Oil futures spark debate on $100 level, Financial Times, Javier Blas, March 28, 2012, CNN.
Should You Drill Into the Oil Futures Market?, Rachel Mork, Life123.
Crude Oil Futures Trading from FuturesCrude.com.
Google Search of News for Oil Futures Market.