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Business, 03.02.2021 23:30 domiyisthom

2. Why is it difficult to determine the spot price of oil? O Oil is highly dependent on politics and thus can change very rapidly.
Oil is primarily sold in long-term contracts, so there is no clear spot price of oil.
Oil is primarily traded in private markets, so very few people know how much money it is selling for.
O Oil cannot be stored efficiently, and thus special types of futures contracts are needed which do not incorporate
spot price.

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