How much does it cost to sell 90,000 barrels of oil using a futures contract

The cost to sell 90,000 barrels of oil using a futures contract depends on the current market price of the oil and the terms of the futures contract.

In order to calculate the cost, you would need to know the agreed upon price per barrel in the futures contract. Let's say the agreed upon price is $60 per barrel.

The cost to sell 90,000 barrels of oil would be:

Cost = Number of barrels x Price per barrel

Cost = 90,000 x $60

Cost = $5,400,000

So, if the agreed upon price per barrel is $60, then it would cost $5,400,000 to sell 90,000 barrels of oil using a futures contract.

Futures contracts are agreements between two parties to buy or sell an asset, such as oil, at a predetermined price and date in the future. The buyer of the futures contract agrees to purchase the asset at the agreed upon price, while the seller agrees to sell the asset at the same price.

The cost of selling oil through a futures contract will also depend on any additional fees or commissions associated with the contract, such as brokerage fees or exchange fees. These fees can vary depending on the exchange or broker used for the transaction.

It's important to note that the cost of selling oil through a futures contract is only the initial cost, and does not include any potential gains or losses that may occur as the price of oil fluctuates leading up to the expiration of the contract.

Overall, the cost of selling 90,000 barrels of oil through a futures contract can vary depending on a variety of factors, including the current market price of oil, the terms of the futures contract, and any associated fees or commissions.