How do oil futures work hedge funds watch "how do oil futures

Hedge funds watch "how do oil futures work" because futures spreads can predict equity earnings in oil-exposed companies. The July/August WTI spread narrowed to $0.50, signaling a moderating supply crunch. Part of the problem is an approaching supply glut, keeping prices depressed. Gasoline demand in the US is expected to rise only slightly in 2026 . Meanwhile, more electricity consumption is expected to see its largest share of demand met by solar power . Oil consumption has also fallen throughout much of the rest of the world , including Europe, Central Asia, Latin America, and China. Exclusive: Chevron puts $2 billion Colorado pipeline assets for sale, sources say Corporate treasurers utilize knowledge of "how do oil futures work" to lock in costs. Airlines hedge by buying long-dated oil futures; with Brent at $83 and volatility easing, their cost forecasts appear stable for Q3.