Oil price benchmarks in international trade: insights from the assessment process. Brent prices - physical or future prices?

Journal article

Oil prices’ return to record high levels has reignited the debate on oil price formation. The dual aspect of oil – investment product and commodity used in the production of commercial fuels – has helped to develop a schizophrenic approach to oil price formation. On the one hand, oil prices are seen as resulting from financial investors’ investment in commodities, always on the long side, helped by recent financial innovations promoting investment diversification. On the other hand, oil prices must be compatible with oil market balances, or there is an excess of physical oil and ever-growing inventories.

Authors: Barret, C

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Oxford Institute for Energy Studies
• Journal: Oxford Energy Forum
• Volume: 87
• Pages: 8-11
• Publication date: 2012-02-01
• Edition: Publisher's version
• ISSN: 0959-7727
• Language: English
• Keywords: OIES