Economy, asked by manijimmy, 8 months ago

2.Question 2 Why is it difficult to determine the spot price of oil? 1 point Oil is highly dependent on politics and thus can change very rapidly. Oil is primarily sold in long-term contracts, so there is no clear spot price of oil. Oil is primarily traded in private markets, so very few people know how much money it is selling for. Oil cannot be stored efficiently, and thus special types of futures contracts are needed which do not incorporate spot price.

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Answered by chetanrajguru
6

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