Market Astrology

Adi Imsirovic () and Colin Bryce ()
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Adi Imsirovic: Surrey Clean Energy
Colin Bryce: Energex Partners

Chapter Chapter 11 in The Rivers of Money, 2025, pp 185-202 from Springer

Abstract: Abstract This chapter explores the transformative rise of oil derivatives and financial instruments in global trading. It traces the origins of the ‘Derivatives Revolution’ in the late 1980s, detailing how financial markets in London and New York pioneered the development of swaps, options, and risk management tools to address oil price volatility. The narrative highlights key industry figures, the role of brokerage firms, and the increasing integration of banks into oil markets. Special attention is given to the impact of sovereign hedging, particularly Mexico’s strategy, as well as the rise of Contracts for Difference (CFDs) and their influence on benchmark pricing. Additionally, the chapter examines the adoption of technical analysis—dubbed ‘market astrology’—as traders sought predictive insights into price movements. Through historical anecdotes and financial market analysis, this chapter provides a comprehensive view of how oil trading evolved into a sophisticated, finance-driven industry.

Keywords: Derivatives; Swaps; Options; Risk management; Banks (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-91806-3_11

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DOI: 10.1007/978-3-031-91806-3_11

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