But they do not when the uncertainty has to do with the rules of the game. Heating oil futures were first used in 1978, followed closely by leaded gasoline. This coincided with the elimination of price controls in the same year. It was not until crude oil prices were decontrolled in 1981 before the crude oil contracts were introduced. Similarly, natural gas futures contracts were not introduced until 1990 when access to pipelines were opened by the Federal Energy Regulatory Commission.
Markets are powerful tools which play an important role in protecting consumers and producers.
However, they cannot be expected to indemnify individuals against the actions of government. Albert Einstein once asserted that God is not malicious. Joseph and the Pharaoh, with the help of divinely inspired crop forecast, effectively used stockpiling to save Egypt during a famine. However, they had a highly reliable forecast, the likes of which has not been seen since. Stockpile of Errors Verleger correctly criticizes the misuse of the oil stocks by the Bush Administration at the begin-fling of the Gulf War.