Oil futures are contracts that obligate the customer to buy a certain quantity of oil at a set value on a future date. Futures contracts for oil and different commodities are traded on exchanges, with consumers and sellers represented by brokers.
A number of advantages include shopping for oil futures in Canada. First, it could actually enable companies to hedge towards value danger. If the value of oil rises, an organization that has purchased futures contracts can nonetheless purchase oil on the value agreed upon within the contract. Second, futures contracts supply companies the chance to invest on the value of oil. If an organization believes the value of oil will rise, it could actually purchase futures contracts within the hopes of cashing in on the value enhance.