• Possibly linux@lemmy.zip
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    8 months ago

    Actually a oil future is basically a promise to make oil for a certain price. There are also are vegetable futures

    That means the oil wasn’t produced yet

    • FiniteBanjo@lemmy.today
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      8 months ago

      Also, Crude Barrels have a shelf life so you definitely wouldn’t store them like that for any extended period of time.

      • Possibly linux@lemmy.zip
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        8 months ago

        A future means that they will be created at some point in the future. Basically its an agreement to buy for a certain price in the future regardless of what the markets are doing.

        • FiniteBanjo@lemmy.today
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          8 months ago

          Yes you said exactly that in the comment I replied to, I never argued against it I was just adding onto it. We both were talking about how unrealistic the comment further above yours was.

      • milicent_bystandr@lemm.ee
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        8 months ago

        But I do remember a story (on daily wtf) where a lady bought coal futures and somehow forgot or didn’t manage to sell, and a coal barge turned up in the river behind her office!