Quote:
Originally Posted by britmaveric  unfortunately projected isn't actual, hence it wouldnt be called future.  |
How simple do you need it?
The oil price quoted is always for a future delivery. You must of heard the media say 'price of crude for October delivery', etc.? FFS!
Now, guess what? That future delivery is not actual! It has to be pumped, shipped, delivered and paid for.
Hence, all oil prices are based on projected delivery and payment. In the mean time, anything can happen; Iran gets nuked, the dollar (which you were going to pay for the stuff) collapses, the foking ship carrying the stuff sinks in the Bermuda Triangle - anything!
So, yes, Mad Mullahs firing missiles around is quite important to the price of oil, as it directly affects the supply at the point in the future which the current oil price relates to.