Question

Please identify and describe a futures contract that trades on the CME Group. In your opinion, will a long position or short position in the futures contract be profitable over the next month? Please justify your view.

Answer 1

The product that is defined is the NYMEX WTI Light sweet crude oil futures.

This price is closely related to the international crude price and in turn dependent on macro economic conditions and.political situation. With the relatively stable macro economic conditions and political instability also not being there and the crude having reduced by 5% recently in the international market. And so the expectation is that crude price would rise slightly in the next month

So to gain from an increase in price, it would be prudent to go long the futures.