This study examines the impacts of inventory and financial instability on the basis of the crude oil market. The results show that, first, the basis rises with inventory, and this effect is higher during low inventory regimes. This validates the theory of storage in the crude oil market. Second, the basis rises with financial instability, and this effect is higher during turbulent regimes. These results warn the oil market participants that, to make decisions based on the basis variation, traditionally known as a signal of scarcity or abundance, the underlying cause of the variation has to be considered.

Ahmadi, M., Bashiri Behmiri, N., & Manera, M. (2020). The theory of storage in the crude oil futures market, the role of financial conditions. THE JOURNAL OF FUTURES MARKETS, 40(7), 1160-1175 [10.1002/fut.22113].

The theory of storage in the crude oil futures market, the role of financial conditions

Ahmadi M.
Primo
;
Manera M.
Ultimo
2020

Abstract

This study examines the impacts of inventory and financial instability on the basis of the crude oil market. The results show that, first, the basis rises with inventory, and this effect is higher during low inventory regimes. This validates the theory of storage in the crude oil market. Second, the basis rises with financial instability, and this effect is higher during turbulent regimes. These results warn the oil market participants that, to make decisions based on the basis variation, traditionally known as a signal of scarcity or abundance, the underlying cause of the variation has to be considered.
Articolo in rivista - Articolo scientifico
Scientifica
crude oil futures; financial stress; inventory; theory of storage; threshold SVAR
English
Ahmadi, M., Bashiri Behmiri, N., & Manera, M. (2020). The theory of storage in the crude oil futures market, the role of financial conditions. THE JOURNAL OF FUTURES MARKETS, 40(7), 1160-1175 [10.1002/fut.22113].
Ahmadi, M; Bashiri Behmiri, N; Manera, M
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10281/270545
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