Oil Price Volatility and the Role of Speculation

Released on by Samya Beidas-Strom
preview-18

  • Oil Price Volatility and the Role of Speculation Book Detail

  • Author : Samya Beidas-Strom
  • Release Date : 2014-12-12
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 34
  • ISBN 13 : 1498333486
  • File Size : 70,70 MB
DOWNLOAD BOOK

Oil Price Volatility and the Role of Speculation by Samya Beidas-Strom PDF Summary

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.

Disclaimer: www.yourbookbest.com does not own Oil Price Volatility and the Role of Speculation books pdf, neither created or scanned. We just provide the link that is already available on the internet, public domain and in Google Drive. If any way it violates the law or has any issues, then kindly mail us via contact us page to request the removal of the link.

Oil Price Dynamics and Speculation

Oil Price Dynamics and Speculation

File Size : 60,60 MB
Total View : 7361 Views
DOWNLOAD

This paper assesses empirically whether speculation affects oil price dynamics. The growing presence of financial operators in the oil markets has led to the di

Crude Oil Pricing

Crude Oil Pricing

File Size : 85,85 MB
Total View : 9094 Views
DOWNLOAD

This paper is intended to better understand the effects of speculation on crude oil prices. While speculation has many benefits such as increasing market liquid

Just Speculation

Just Speculation

File Size : 97,97 MB
Total View : 5515 Views
DOWNLOAD

Oil speculators take a lot of flak for the supposed "damage" they cause to the oil market and the economy as a whole. Price manipulation by speculators has been