Crude oil futures are a type of financial contract that allows investors to buy or sell crude oil at a set price on a future date. These contracts are traded on exchanges, such as the New York Mercantile Exchange (NYMEX), and are used by a variety of market participants, including producers, consumers, and speculators.
There are a number of reasons why someone might want to buy crude oil futures. For producers, futures contracts can be used to lock in a price for their oil, which can help to reduce their risk. For consumers, futures contracts can be used to hedge against the risk of rising oil prices. And for speculators, futures contracts can be used to bet on the future direction of oil prices.