oil futures

Oil futures are contracts that allow buyers and sellers to agree on the price of oil for delivery at a later date. This helps companies manage risks associated with fluctuating oil prices. For instance, a company predicting that oil prices will rise can lock in a lower price now. Conversely, investors can speculate on price movements to profit from changes in the market. Essentially, oil futures enable participants to hedge against price volatility while also providing opportunities for investment in the energy sector.