Thus, if one uses forwards plus options - one fixes a price in the future that can be not too far from the market price at the time of delivery. Such financial positions require sophisticated management and day to day maintenance of the forwards and options positions. The market is totally deregulated - exports and imports are totally allowed and free. The prices are fixed every 3 or 6 months based on the cost of oil at a certain port of delivery. This is called a COST PLUS basis pricing method.
Cold weather increases consumption.
The world is getting hotter. The 14 hottest years in history have been in the last 25 years. The warmer the climate - the less oil is consumed for heating. In the Western developed countries it is still strong. Growth is about to recover in South East Asia.