Author: Publisher:
ISBN:
Category : Natural gas
Languages : en
Pages : 56
Book Description
The Role of Market Speculation in Rising Oil and Gas Prices
THE ROLE OF MARKET SPECULATION IN RISING OIL AND GAS PRICES: A NEED TO PUT THE COP..., JUNE 27, 2006, 109-2 SENATE, S. PRT. 109-65, *
Author: Oil Price Volatility and the Role of Speculation
Author: Samya Beidas-StromPublisher: International Monetary Fund
ISBN: 1498333486
Category : Business & Economics
Languages : en
Pages : 34
Book Description
How much does speculation contribute to oil price volatility? We revisit this contentious question by estimating a sign-restricted structural vector autoregression (SVAR). First, using a simple storage model, we show that revisions to expectations regarding oil market fundamentals and the effect of mispricing in oil derivative markets can be observationally equivalent in a SVAR model of the world oil market à la Kilian and Murphy (2013), since both imply a positive co-movement of oil prices and inventories. Second, we impose additional restrictions on the set of admissible models embodying the assumption that the impact from noise trading shocks in oil derivative markets is temporary. Our additional restrictions effectively put a bound on the contribution of speculation to short-term oil price volatility (lying between 3 and 22 percent). This estimated short-run impact is smaller than that of flow demand shocks but possibly larger than that of flow supply shocks.
The Oil Bubble
Author: Samuel P. IrvinPublisher:
ISBN:
Category : Speculation
Languages : en
Pages : 78
Book Description
Speculation in the Crude Oil Market
Author: United States. Congress. Senate. Committee on Homeland Security and Governmental Affairs. Permanent Subcommittee on InvestigationsPublisher:
ISBN:
Category : Electronic government information
Languages : en
Pages : 264
Book Description
Crude Oil Pricing
Author: Michael Hall YanPublisher:
ISBN:
Category :
Languages : en
Pages : 104
Book Description
This paper is intended to better understand the effects of speculation on crude oil prices. While speculation has many benefits such as increasing market liquidity and bearing market risks that other wish to offset, speculation can also create unwanted market volatility and economic bubbles. During the past decade, crude oil prices have been extremely volatile causing increased controversy between investors and regulators regarding the role that oil speculation has played in the price of crude oil. This report examines the relationship between crude oil spot and futures prices to determine the role arbitragers, speculators, and hedgers have had in crude oil pricing.
The Impact of Rising Oil Prices on the World Economy
Author: Lars MatthiessenPublisher: Springer
ISBN: 1349063614
Category : Business & Economics
Languages : en
Pages : 217
Book Description
Non-commercial Institutional Investors on the Price of Oil
Author: United States. Congress. Senate. Committee on Energy and Natural ResourcesPublisher:
ISBN:
Category : Futures market
Languages : en
Pages : 104
Book Description
Speculation in the Oil Market
Author: Luciana JuvenalPublisher:
ISBN:
Category : Petroleum products
Languages : en
Pages : 34
Book Description
The run-up in oil prices since 2004 coincided with growing investment in commodity markets and increased price comovement among different commodities. We assess whether speculation in the oil market played a role in driving this salient empirical pattern. We identify oil shocks from a large dataset using a dynamic factor model (DFM). This method is motivated by the fact that a small scale VAR is not infomationally sufficient to identify the shocks. The main results are as follows: (i) While global demand shocks account for the largest share of oil price fluctuations, speculative shocks are the second most important driver. (ii) The increase in oil prices over the last decade is mainly driven by the strength of global demand. However, speculation played a significant role in the oil price increase between 2004 and 2008, and its subsequent collapse. (iii) The comovement between oil prices and the prices of other commodities is mainly explained by global demand shocks. Our results support the view that the recent oil price increase is mainly driven by the strength of global demand but that the financialization process of commodity markets also played a role.
The Role of Speculation in Oil Markets
Author: Bassam FattouhPublisher:
ISBN: 9781907555442
Category : Petroleum products
Languages : en
Pages : 25
Book Description