No, there are an infinite number of possible contracts. You can create them out of thin air. At a moments notice.
And anyone else that needs to have a guaranteed supply of future oil... now has to either buy it from you, or pay more than you for the oil on the exchange.
Since the spec is not going to take delivery and you think a refinery won't buy contracts at the last minute, the spec is going to lose his shorts when he has to sell to another spec before settlement date.
Of course the speculators know what price Exxon(or oil company) is willing to pay.
You're funny.
It's the lowest price possible to get the goods.
Not the $20 in your example?
And why would a speculator sell at a price point less than what they paid?
Because the 1000 barrels for each contract won't fit in his basement.
If you think that 'having to take delivery' is a problem for speculators... you'll need to think again.
You don't know much about commodity markets.
If it was a problem, we wouldn't see hedge funds making long-term investments into oil futures.
What makes you think hedge funds take delivery of oil?
You really aren’t convincing me. You’ve made no point, only rebuttals. And your rebuttals are more sarcastic than informative.
So, in essence, you’ve only convinced me that you simply don’t like my point, not that my point is wrong.
And, well, that strikes me as the actions of an ostrich, ignoring reality to put one’s head in the sand.