Oil futures are contracts that allow buyers and sellers to agree on a price for a specific amount of oil to be delivered at a future date. These contracts are traded on exchanges, and they help participants manage the risk of price fluctuations in the oil market. Investors use oil futures to speculate on future price movements or to hedge against potential losses in their portfolios. The price of oil futures can be influenced by various factors, including global supply and demand, geopolitical events, and changes in energy policies.