The Trading and Price Discovery for Crude Oils

Adi Imsirovic ()
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Adi Imsirovic: Oxford Institute of Energy Studies

Chapter Chapter 18 in The Palgrave Handbook of International Energy Economics, 2022, pp 327-358 from Springer

Abstract: Abstract What is the price of oil? Most oil in the world is never traded. Value of exchanged oil is set by key ‘benchmarks’ grades or baskets of crude oil that are commonly traded, both as physical and ‘paper’ barrels, in volumes many times greater than the world production. It is the derivative trades in these benchmarks such as Brent, WTI, Dubai and Oman that set the global price of oil and they are the most interesting feature of the oil market. Markets in these benchmarks are the stage on which two distinct categories of players are differentiated: the price makers and the price takers. How and why these benchmarks came to exist, how they work, interact and change over time is the subject of this chapter.

Keywords: Oil trading; Oil price; Price discovery; Global oil markets; Oil benchmarks (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/978-3-030-86884-0_18

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