Oil Futures
Crude oil futures contracts, forward curve positioning, and derivatives market analysis for WTI and Brent benchmarks.
How Oil Futures Work
Oil futures are standardized contracts traded on exchanges that obligate the buyer to purchase, and the seller to deliver, a specific quantity of crude oil at a predetermined price on a future date. WTI futures trade on the New York Mercantile Exchange (NYMEX) in 1,000-barrel contracts, while Brent futures trade on the Intercontinental Exchange (ICE).
The futures curve shows prices for contracts expiring in successive months. When near-term contracts trade at higher prices than deferred months, the market is in backwardation — typically signaling tight supply. When deferred months are more expensive, the curve is in contango — often indicating oversupply or storage economics.