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The Predictive Content of Energy Futures: An Update on Petroleum, Natural Gas, Heating Oil and Gasoline / Menzie D. Chinn, Michael LeBlanc, Olivier Coibion.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Chinn, Menzie D.
Contributor:
National Bureau of Economic Research.
LeBlanc, Michael.
Coibion, Olivier.
Series:
Working Paper Series (National Bureau of Economic Research) no. w11033.
NBER working paper series no. w11033
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
The Predictive Content of Energy Futures
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2005.
Summary:
This paper examines the relationship between spot and futures prices for energy commodities (crude oil, gasoline, heating oil markets and natural gas). In particular, we examine whether futures prices are (1) an unbiased and/or (2) accurate predictor of subsequent spot prices. We find that while futures prices are unbiased predictors of future spot prices, with the exception those in the natural gas markets at the 3-month horizon. Futures do not appear to well predict subsequent movements in energy commodity prices, although they slightly outperform time series models.
Notes:
Print version record
January 2005.

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