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CIF OR FOB: WHICH CONDITION IS MORE PROFITABLE ON THE FUTURES AND SPOT OIL MARKETS?

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Russian oil and oil products sellers face various dilemmas in their activities, as trade in this market has its own specific features that distinguish this type of business from other… Click to show full abstract

Russian oil and oil products sellers face various dilemmas in their activities, as trade in this market has its own specific features that distinguish this type of business from other types of activity. One of the trader’s dilemmas is the choice of a basic condition for the supply of oil and oil products. This factor significantly affects the entire outcome of the transaction in various markets: derivatives and spot. In this article, the authors will analyze the main features of contracts and oil markets, as well as identify the relationship between the basic conditions of supply and forms of trade in the oil market

Keywords: condition profitable; fob condition; cif fob; oil markets; oil

Journal Title: Economic Systems
Year Published: 2020

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