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OAEN 2055 - Energy Markets

Type d'enseignement : Seminar

Semester : Spring 2017-2018

Number of hours : 24

Language of tuition : English

Voir les plans de cours et bibliographies

Pre-requisite

Economics or Market Trading background (Energy Economics, Finance Markets, International Trade)

Course Description

The lectures on the oil markets are aimed to explore the current issues concerning the interaction between physical and financial layers of the oil market and to analyse the implications of financialization of oil markets on oil price behaviour. One objective is to describe the evolution of the international oil pricing system and to assess its main features. Another objective is to explain the basic mechanics of financial instruments and how these instruments can be used for hedging purposes and price discovery in the oil market. The module is designed to be accessible both to those with little prior knowledge of finance issues/risk management principles. By the end of the module students would have learned to: Assess the main features of the current international oil pricing system and the process of price formation in oil markets; Analyse the interaction between the physical and financial layers of the oil market; Introduce the main financial instruments used in the oil markets and how these could be used for hedging purposes; Derive the oil forward curve and assess the importance of financial layers in the price discovery function; Assess the role of financial players and financial layers and their impact on oil price movements.

Teachers

  • FATTOUH, Bassam (Director of Oil & Middle East Programme)
  • MORRISON, Eleanor (Managing Director, Commodity Reach Ltd, London, UK)
  • STERN, Jonathan P. (Distinguished Research Fellow)

Course validation

50% Midterm and 50% Final Exam (both exams are take home and conducted during a pre-selected 24 hour period). Midterm is scheduled for after the 6th class lecture. Final exam is scheduled after the last lecture or during the final exam time period as agreed upon between the class participants and professor.

Required reading

  • Fattouh, B. (2011), ‘An Anatomy of the Crude Oil Pricing System', OIES WPM 40, Oxford: Oxford Institute for Energy Studies. http://www.oxfordenergy.org/wpcms/wp-content/uploads/2011/03/WPM40-AnAnatomyoftheCrudeOilPricingSystem-BassamFattouh-2011.pdf
  • Fattouh, B. and L. Mahadeva (2012), Finacialization in Oil Markets: Lessons for Policy, Oxford Energy Comment, December.http://www.oxfordenergy.org/wpcms/wp-content/uploads/2012/12/Financialization-in-oil-markets.pdf
  • Fattouh, B. L. Kilian and L. Mahadeva (2013), The Role of Speculation in Oil Markets: What Have We Learned So Far?, The Energy Journal, Vol. 34, No.3. http://www.oxfordenergy.org/wpcms/wp-content/uploads/2012/08/WPM-45.pdf
  • Fattouh, B. and L. Mahadeva (2013), ‘OPEC: What Difference has it Made?' Annual Review of Resource Economics, Forthcoming. http://www.oxfordenergy.org/wpcms/wp-content/uploads/2013/01/MEP-3.pdf

Plans de cours et bibliographies