Are you familiar with WTI futures contracts by month? If not, it`s time to get acquainted. These contracts are a contract to buy or sell oil for delivery in the future, specifically, West Texas Intermediate (WTI) crude oil.
WTI futures contracts by month are a popular way for investors to hedge against the volatile oil market. These contracts are traded on exchanges such as the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE).
Each WTI futures contract represents 1,000 barrels of oil and is priced in U.S. dollars. The contract specifies a delivery month, which can range from the current month to several years in the future.
Investors can use WTI futures contracts by month for a variety of purposes, including speculative trading, hedging, and risk management. Speculative traders may buy or sell contracts based on their expectations of future oil prices, while hedgers may use contracts to protect against price fluctuations.
WTI futures contracts by month are also important for oil industry professionals. Oil producers may use these contracts to lock in a price for their oil before it is even extracted from the ground. Refiners may use them to protect against price fluctuations when purchasing oil for their refineries.
When trading WTI futures contracts by month, it`s important to pay attention to the delivery month. The price of the contract may fluctuate based on the anticipated supply and demand for oil during that specific month.
For example, if there is a high demand for oil during the delivery month, the price of the contract may increase. Conversely, if there is an oversupply of oil during the delivery month, the price may decrease.
So, why should you care about WTI futures contracts by month? If you are an investor, these contracts can provide a way to profit from changes in the oil market. If you are an oil industry professional, they can provide a way to manage risk and protect your business from price fluctuations.
Overall, WTI futures contracts by month are an important tool in the world of oil trading and are worth understanding if you are involved in the industry or interested in investing.