Fundamentals of Petroleum Trading

Until as recently as the late 1970s, the main channel for oil distribution was the integrated system of the major oil companies, while the volume of spot trading was limited to roughly 5 percent of the total oil trade. Today, spot and spot-related deals account for 80 to 85 percent of internationally traded petroleum, and have ushered in a new era of petroleum trading. In this work, Hossein Razavi and Fereidun Fesharaki offer a detailed study of the workings and issues surrounding today's oil trading market as they apply to all parties involved in the production, distribution, and consumption of petroleum. They provide a complete description of petroleum spot markets, futures, and options trading, and their interlinkages with contract sales.

Razavi and Fesharaki cover a wide range of topics, and challenge the generally accepted view that spot and futures trading have wrested the power of price setting away from OPEC. They claim that prices are still determined by supply, which OPEC continues to influence. The book is divided into four sections, beginning with an overview of recent developments in spot, futures, and contract trading. Section two provides an analysis of spot and spot-related deals, while the third section describes the mechanics, organization, and evolution of petroleum futures markets and options trading. The work concludes with an in-depth section on interlinkages, examining the interactions among various segments of the market, including spot and futures trading, petroleum stock building, and OPEC. This book will be a valuable resource tool for libraries as well as a wide range of users, from oil industry professionals and financial analysts to students of energy-related topics.

List of contents

Preface
The Setting
An Overview of Present Trading Practices
Petroleum Spot Markets
Mechanics of Spot Trading
Spot-Related Deals
The Role of Petroleum Spot Prices
Futures Markets
The Mechanics of Futures Trading
Evolution of Futures Markets
The Rules of the Game
Petroleum Options Trading
The Market Interlinkages
The Impact of Futures Trading on Petroleum Stock Movements
Interactions Between Future Prices and the Spot Market Price
Predicting Futures Prices: Science versus Art
OPEC, Spot, and Futures Trading: A New Market Triangle
Appendixe Tables
Bibliography
Index

About the author

Hossein Razavi, Fereidun Fesharaki

Product details

• Authors: Fereidun Fesharaki, Fesharaki Fereidun, Hossein Razavi, Razavi Hossein
• Publisher: Bloomsbury
• Languages: English
• Age Recommendation: ages 7 to 17
• Product format: Hardback
• Released: 26.08.1991
• EAN: 9780275939205
• ISBN: 978-0-275-93920-5
• Subjects: Social sciences, law, business > Business > Miscellaneous; TECHNOLOGY & ENGINEERING / Petroleum, BUSINESS & ECONOMICS / Industries / Energy, Petroleum & oil industries, Petroleum, oil and gas industries, Business: International