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That still isn't risk free, a producer could sell some futures contracts and not be able to produce on delivery; then they either have to sell the future on at
by clappski 10y ago
That still isn't risk free, a producer could sell some futures contracts and not be able to produce on delivery; then they either have to sell the future on at a below market price (it will be closer to the spot) or purchase oil to make delivery. It only has less risk on the buy side.