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Futures contracts
Oil markets work usingfutures contracts,which enable investors,speculators and businesses to buy and sell barrels of oil for set prices on a set date in the future. Hundreds of millions of futures contracts are traded every day,for
After rebounding to above $120 per barrel (bbl) in mid-June, oil prices have retreated below $100/bbl in the past few months and arecontinuing to fall. Conflicting supply and demand factors have increased uncertainty in oil price forecasts. Fears of
Global auction
Oil markets are essentially aglobal auction—the highest bidder will win the available supply. Like any auction,the bidder doesn’t want to pay too much. When markets are tight (when demand is high and/or available supply is low),the b