Is buying and selling oil futures contracts, which expire at a specific time and can be sold before then to profit from price differences, permissible?

The basic ruling on trading oil through the international stock exchange is permissibility, provided that those involved adhere to Sharia-compliant guidelines. However, most contracts on the stock exchange include Sharia-prohibited elements. It appears that buying and selling oil before taking possession of it is impermissible, as the transaction then becomes about profiting from price differences, and the commodity itself is no longer the primary intent. Furthermore, if a sale involves the deferral of both exchanges (price and commodity), it is impermissible and falls under the prohibited "sale of a deferred for a deferred."

The Islamic Fiqh Academy has clarified the permissibility of trading commodities in organized markets in two situations: 1. The contract includes the right to receive the commodity and the price immediately, with the commodities or their representing receipts being in the seller's possession and ownership. 2. The contract includes the right to receive the commodity and the price immediately, with both being possible through the market authority's guarantee.

As for the impermissible situations, they are: 1. Contracting for the delivery of a described commodity that is a liability at a future date and paying the price upon delivery, with the condition that the contract ends with actual delivery and receipt, due to the deferral of both exchanges. It is also impermissible to sell a commodity purchased via salam (forward contract) before taking possession of it. 2. Contracting for the delivery of a described commodity that is a liability at a future date and paying the price upon delivery, without the condition of actual delivery and receipt, but rather allowing for settlement through an opposing contract.