Tag: Convenience Yield

  • Redefining the Convenience Yield in the North Sea Crude Oil Market

    By: F. Caumon , J. Bower

    Despite falling production volumes and recent modifications to the way it is traded and prices reported, Brent crude oil produced in the North Sea remains the dominant marker grade for most of the crude oil produced and consumed outside of the Americas. This paper derives from a fundamental observation made by Paul Horsnell and Robert […]

  • The Term Structure of Oil Futures Prices

    By: J. Gabillon

    In recent years, there has been a massive development of derivative financial products in oil markets. The main interest came from large energy end-users who found in them a welcome opportunity to lock in fixed or maximum prices for their supplies over a period of time. Oil companies and oil traders were able to provide […]