Evolving roles of energy futures markets: A survey

Energy markets are important in global trade and economic stability, and energy futures play a critical role in energy market dynamics. This study reviews: i) the important role energy futures market prices play as reliable forecasts of future spot prices for energy commodities; ii) the connectedness of energy futures and spot markets; iii) how energy futures markets facilitate managing exposure to energy price risk; iv) the systemic influence of energy futures prices and volatility on other markets and how this influence frequently surges during crises. Our survey provides economic insights for energy market participants and policymakers.