Understanding oil prices : a guide to what drives the price of oil in today's markets / Salvatore Carollo.

Format:

Book

Author/Creator:

Carollo, Salvatore.

Series:

Wiley finance series.

Wiley finance series

Language:

English

Subjects (All):

Petroleum products--Prices.

Petroleum products.

Petroleum industry and trade--History.

Petroleum industry and trade.

Physical Description:

1 online resource (200 p.)

Edition:

1st ed.

Place of Publication:

Hoboken, N.J. : Wiley, 2012.

Language Note:

English

Summary:

"Oil prices have seen massive fluctuation over the past 10 years, with price per barrel growing from $9 to $140. More recently, we have seen fluctuation from $140 to $37/barrel, and back up to $120 - all in a matter of months. But why? It is still a popular belief that OPEC can affect the price of oil by regulating the volume of production and using this key raw material for their political aims, but the reality is quite different. In the last decade, despite a constant potential surplus of crude in the markets, we have seen the prices fluctuating dramatically with no apparent logic.Starting from the Chernobyl accident and the Clean Air Act implementation in the US, structural changes within the oil industry have modified the dynamics of oil prices. The existing technological refining system is no longer adequate to transform, with the necessary continuity, the crude oils into the high-quality finished products demanded by the market. Furthermore, from the beginning of the year 2000, the oil futures market detached itself almost completely from its original nature (the barrel of oil), becoming a purely financial market, but still able to heavily affect the real oil prices. More sophisticated models are needed to understand this new scenario.This book thoroughly demystifies the oil market, showing readers what really moves the price of oil today. It provides a comprehensive analysis of the industry fundamentals and the role of financial speculation, illustrating the complexity of the relationship of three different markets that regulate the oil sector: the crude oil market (raw material), the finished products market (gasoline, diesel, jet fuel, fuel oil, chemical feedstocks, lubricants), and the financial market (futures). It will provide an excellent grounding in the topic for anyone involved or interested in the oil markets, including financial analysts, traders, investors and energy market participants"-- Provided by publisher.

Contents:

Understanding Oil Prices; Contents; Foreword; Preface; Quick Reference Guide; List of Figures; List of Tables; List of Boxes; 1 The World Crude Oil Paradoxes; 2 The Market Events from 2008 to 2011; World Energy Policy; The Financial Crisis and the Oil Market; Fundamentals or Financial Speculation?; Demand/Supply of Gasoline and Gasoil; WTI - Brent Differential; 3 Evolution of the Price of Crude Oil from the 1960's up to 1999; 1960-1980: The Oil Monopoly and the Two Crises in the 1970's; The 1980's: The Gradual Disappearance of OPEC; The Price War

1985-2000: From the Introduction of Brent as an International Benchmark to the Clean Air Act The Suicide of OPEC; The Start of the Free Market; The Consequences of the Environmental Turnaround; 4 Changes in the Market for Automotive Fuels; Evolution of Environmental Demand; Gasoline and its Components; Reforming; Cracking; Alkylation; Isomerization; Refiners Walk the Tightrope; The Fiscal Policy of the Industrialized Countries Regarding Fuels; 5 World Oil Flow; Transformations in the Downstream; World Supply Structure; 6 The Classical Model of the International Oil Market

7 The Short-term Model of the International Oil Market 8 The Brent Market; The Sale and Purchase Contract; The Forward Market for Brent (15 day Brent Contract); The IPE Brent Market; The Divorce Between Oil Price and Oil; 9 Principal Uses of the Forward and Futures Markets; Tax Spinning; Benchmarking; Hedging the Price Risks; Speculations on Operational Flexibilities at Loading; Market Structure: Contango and Backwardation; Procedures at the Loading Terminals; 10 Problems of the Brent Forward Market; 11 The European Refinery Crisis; 12 Conclusions:We are Ourselves OPEC; Bibliography; Index

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

ISBN:

9786613333155

9781119962922

1119962927

9781119962908

1119962900

9781283333153

1283333155

9781118467251

1118467256

9781119962892

1119962897

OCLC:

769188929