Browsing by Author "Kuttymuratova, Nuriya"

Now showing 1 - 1 of 1
  • Thumbnail Image
    ItemRestricted
    THE THEORY OF STORAGE IN THE PETROLEUM PRODUCTS FUTURES MARKET
    (Nazarbayev University Graduate School of Business, 2023) Kuttymuratova, Nuriya
    The energy product markets exhibit significant price and inventory volatility. Some of these fluctuations are unpredictable, prompting market participants to employ futures contracts and inventories as tools for risk mitigation. For instance, there was a notable and unprecedented event in the oil markets in April 2020 when oil prices briefly turned negative due to substantial decrease in global oil demand: the West Texas Intermediate (WTI) crude oil futures for May delivery experienced a historic drop, closing at approximately - $37.63 per barrel(Reed and Krauss, 2021). Consequently, the spread between futures and spot prices, known as the basis, serves as a crucial indicator of setting the efficient hedging strategy, and deciding the time when to sell or buy in oil futures markets...