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Oil Futures Price Rising prices of oil futures contracts in a reasonable way to get an idea of the movement of oil prices to come? I want to have an educated guess for the future evolution of oil prices on a mission ... Is this a good benchmark to look at oil futures price is traded on the market have an estimate. No, the futures price is usually equal to the cash prize as well as storage and financing costs. During the shortage, it can not reverse the futures price may be lower than the spot price. The future price is really just today's prices, plus the cost of capital. Look at the world economic recovery, that is, oil prices climb. Futures price reflects the expectation of hope for future price of a product at the moment. Looking at the futures price and see if it is in contango or backwardation, you can get an idea of how investors think about the future price now. But thats only the views of investors about the future at this point in time. This opinion may change daily as well. Contango can change as easily offset and vice versa. As such, looking at the futures price is no foolproof way to predict the market is. Posted on January 31, 2010.
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