Oil Prices: the True Role of Speculation

In US dollar terms, the price of oil rose 525% from the end of 2001 to July 31, 2008. This position paper argues that, despite the appeal of blaming speculators, supply-and-demand imbalances, the fall in the dollar and low spare capacity in the oil-producing countries are the major causes of this sharp rise.

It also identifies many of the excessively opaque facets of the world oil markets and argues that greater transparency would enable policymakers to make sound economic decisions. Oil futures markets are shown to contribute to the greater transparency of oil markets in general. However, as the paper shows, futures trading can have short-term effects on commodity prices. In general, it is nearly impossible to pinpoint a single cause for recent oil price movements; indeed, an overview of the geopolitics of the major producing regions underscores the complexity of attempts to do so and points to a multiplicity of structural causes for what this paperrecent falls in oil prices notwithstandingterms the third oil shock. 

Pdf
Oil_Prices_and_Speculation.pdf...
(-1.00 B)
Type : Position paper
Date : le 03/11/2008
Research Cluster : Finance

See Also

Assets replicating Scientific Beta’s multi-factor indices reach USD 25bn
News
- 22-02-2018
Scientific Beta, the smart beta index provider offshoot of EDHEC-Risk Institute, has...
EDHEC Named France National Champions of the KPMG International Case Competition
News
- 20-02-2018
Impact Consulting, a team of four, EDHEC M1 Business Management students, are national...
Investing in Relationships: Why trust matters in private banking
News
- 19-02-2018
  The presentation, The Private Banking Industry – Current Mapping and Future...
EDHEC Global MBA OPEN DAY
News
- 16-02-2018
Looking to advance your career ?  Join the Global MBA team for an exclusive OPEN...