Download or read book The Impact of the Introduction of Future Contracts on Spot Contracts Volatility for the Oil Market written by Joseph Maarawi and published by . This book was released on 2015 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Cme Vulnerability The The Impact Of Negative Oil Futures Trading written by George Xianzhi Yuan and published by World Scientific. This book was released on 2020-10-23 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2020, the global lockdowns caused by the COVID-19, or coronavirus, pandemic had resulted in a sharp drop in demand for crude oil. This impact was so severe that on April 8, 2020, a proposal to update the Chicago Mercantile Exchange Holdings Inc. (CME) trading rule to permit negative prices was applied to CME's WTI Oil futures contracts; this led to a novel phenomenon in which the closing clearing price of WTI Oil May future was $-37.63/barrel based on fewer than 400 contracts' trading volume in the last three minutes, reflecting less than 0.2% of the total trading contracts volume on April 20, 2020. This occurrence of negative closing clearing price for CME's WTI Oil futures trading, cannot be explained simply by just the principle of supply and demand; instead, it highlights vulnerabilities caused by CME's allowance of negative price trading (based on its trading platform), a decision which brings potential and fundamental challenges to the global financial system.This event challenges not just our basic concepts of 'value' and trading 'price' of commodities and goods that underline our understanding of the framework for the invisible hand and general equilibrium theory in economics established by a few generations of scholars since Adam Smith in 1776 for market economies, but also have wider implications on the fundamentals that underpin our ideas of value and labor in the organization, activity, and behavior of civilizations and individual liberties.The scope of this book is limited to covering the impact of the negative oil futures derivatives' trading between April 20 and 21, 2020. This book focuses on exploring the issues, challenges, and possible impacts on global financial markets due to the negative clearing prices of WTI Oil futures contracts and related problems from different perspectives. Topics covered include the responsibilities and liabilities of the CME; critique to the fundamental theory of economics and the modern understanding of value and labor; and challenges to the global financial systems and businesses and introduction to new methods of application.
Download or read book Oil Price Volatility and the Role of Speculation written by Samya Beidas-Strom and published by International Monetary Fund. This book was released on 2014-12-12 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book The impact of the introduction of index futures contracts on the price volatility in the underlying stock market written by Philip Hsu and published by . This book was released on 2000 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Oil futures Markets written by William G. Prast and published by Free Press. This book was released on 1983 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The New Era of Petroleum Trading written by Hossein Razavi and published by . This book was released on 1989 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: Until as recently as the early 1970s, the main channel for oil supply was the integrated system of the major oil companies. Each company had its own source of crude as well as the capacity to refine it. The volume of spot trading was limited to around 5 percent of the total oil trade. Today, spot and spot-related trades comprise some 80 pecent of the internationally traded petroleum. Although the use of new trade instruments began in the early 1980s and almost all market participants are still learning, petroleum traders of developing countries have lagged behind those of the developed countries. This lag has resulted in the inability of these countries to procure their petroleum requirements at the lowest possible cost. Since petroleum costs in most developing countries constitute a large component of the total import bill, the potential to benefit from the use of modern trading instruments is substantial.
Download or read book Oil Futures Trading written by Hossein Razavi and published by . This book was released on 1984 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Adjusting to Volatile Energy Prices written by Philip K. Verleger and published by Peterson Institute. This book was released on 1994 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: The author traces the development of petroleum commodity markets, then examines the quest by producers and consumers for stability in world oil markets. He finds that modest producer and consumer gains can be realized through negotiations that achieve removal of barriers to trade, elimination of hurdles to foreign investment, and strengthening of financial institutions.
Download or read book The Impact of the Introduction of Index Futures Contract on the Price Volatility in the Underlying Stock Market written by Philip Hsu and published by . This book was released on 2000 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Futures Markets and Petroleum Supply written by Richard D. Farmer and published by . This book was released on 1986 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Oil Futures Markets written by Ferdinand E. Banks and published by . This book was released on 1987 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Forecasting Accuracy of Crude Oil Futures Prices written by Mr.Manmohan S. Kumar and published by International Monetary Fund. This book was released on 1991-10-01 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper undertakes an investigation into the efficiency of the crude oil futures market and the forecasting accuracy of futures prices. Efficiency of the market is analysed in terms of the expected excess returns to speculation in the futures market. Accuracy of futures prices is compared with that of forecasts using alternative techniques, including time series and econometric models, as well as judgemental forecasts. The paper also explores the predictive power of futures prices by comparing the forecasting accuracy of end-of-month prices with weekly and monthly averages, using a variety of different weighting schemes. Finally, the paper investigates whether the forecasts from using futures prices can be improved by incorporating information from other forecasting techniques.
Download or read book Oil Prices written by United States. General Accounting Office and published by . This book was released on 1991 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Performance of the NYMEX Energy Futures Trade written by Ole Gjølberg and published by . This book was released on 1986 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of Speculators Activity on Crude Oil Futures Prices written by Ikhlaas Gurrib and published by . This book was released on 2007 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a VECM model, findings indicate significant short-run causality running from speculators' trading activity to futures prices. However, the magnitude of this effect was small. Long-run causality, on the other hand, runs from prices to speculators' activity and not vice versa, whenever spot prices, futures prices and speculators' net positions are cointegrated. Using conditional standard deviation as a proxy to volatility, findings support no significant relationship between large speculators trading activity and volatility in the U.S. Crude Oil futures market. Using conditional variance, however, supported a significant negative relationship between trading activity and volatility. Recursive estimates of standard deviation were more volatile than its variance counterpart, due to the higher sensitivity of standard deviation to futures prices.
Download or read book The NYMEX Crude Oil Futures Market written by Christophe Chassard and published by . This book was released on 1986 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Speculation in the Crude Oil Market written by United States. Congress. Senate. Committee on Homeland Security and Governmental Affairs. Permanent Subcommittee on Investigations and published by . This book was released on 2008 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt:
