Oil futures
Definition
Standardized financial contracts traded on commodity exchanges, obligating the buyer to purchase and the seller to deliver a specified quantity of crude oil (or refined products) at a predetermined price on a future delivery date.
Derivatives used by producers, consumers, and speculators to hedge against or speculate on fluctuations in oil prices, primarily traded on platforms like the NYMEX or ICE.
Examples
With oil futures spiking amid Middle East tensions, my gas-guzzling SUV suddenly feels like a bad life choice.
He made a fortune shorting oil futures just before the shale boom flooded the market – talk about striking black gold without the drill.
Oil futures tumbled today, leaving speculators greener than an electric car owner's thumb.
Betting on oil futures is like playing poker with OPEC: high stakes, but the house always has wild cards.