What is strip oil price?

The strip oil price refers to the average price of crude oil over a specific future period, typically derived from the prices of oil futures contracts. It represents a weighted average that helps producers, investors, and analysts gauge market expectations for oil prices over time. This price can be useful for financial planning, budgeting, and assessing the economic viability of oil-related projects. The strip price is often analyzed for various time horizons, such as one year or multiple years into the future.