Reply to thread

Message: <blockquote data-quote="Flipx99" data-source="post: 4530951" data-attributes="member: 562352">Not only speculations, but pension funds and a variety of other massive financial organizations are investing in oil futures.Generically, an oil future is the delivery for a quantity of barrels of oil of a particular grade at a particular time. Say, for instance, I can buy one contract of 40,000 barrels of light sweet at the price of $130/bl for Aug delivery. If the spot (current) price increase above $130/bl, then the value of my future increases. The actual transfer of cash is marked to market daily. However, the value of the future can deviate from the spot price if conditions warrent it.IMO, this is just another bubble...only this time, it effects a larger group of people.</blockquote>

Top