eli5: is the price of crude oil i see on the futures market the same as the actual price refiners are paying?
In: 12
Maybe.
Unlike speculators, refiners buy oil on commodities contracts planning to actually receive oil. Refiners are a small fraction of actual oil contract order flow, most transactions on the futures market are between speculators.
The oil that’s being refined today was purchased on prior contracts, so there are time-driven factors as well.
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