What type of oil is delivered in a futures contract?
Crude oil is delivered when a futures contract expires.
How many barrels of crude oil are included in a futures contract?
1,000 barrels of oil are generally included in a futures contract, with each barrel containing 55 gallons of oil.
Why are crude oil futures usually settled prior to expiration?
Most price speculators don’t have space to store 55,000 gallons of oil and are only looking for a quick profit, so they tend to settle the futures contract before it expires.