Brent Futures Curve
The Brent Futures Curve is the current price for a commodity at a specified date in the future. In this chart, the price is shown for 1 month (M1) to 80 months (M80) in the future. The historical data regarding Brent Futures Curves can be plotted by clicking “Historical Futures Curve Data”.
The Futures Curve is not a forecast of future spot prices.
A commodity futures contract is a binding agreement that gives one the right to purchase that commodity at a predefined price on a predefined date in the future. Under a futures contract, both the buyer and the seller are obligated to fulfil their side of the transaction on the specified date. The futures curve shows the price at which it is possible to buy or sell futures contracts for a forward date at a price agreed today (or on a particular date in the past).
Some of the factors that influence oil and gas prices include demand/supply dynamics, storage levels and costs, interest rates, insurance costs, marginal cost of supply, foreign exchange rates, potential geopolitical risks disrupting supply and the ability to deal with the supply shock (OPEC spare capacity and inventory levels) and the markets views and expectations of all of this and more.
Brent Futures information is considered by ERCE’s oil and gas commercial modelling group in their routine workflow.