OIES Podcast: Virtual Barrels, Financial Players and Oil Price Volatility
In this podcast Bassam Fattouh discusses with Ilia Bouchouev his Energy Comments in the OIES Energy Quantamentals series based on his new book “Virtual Barrels” and the growing importance of financial barrels in the oil market, with a focus on financial market participants, oil options and volatility trading. They set the stage by defining “virtual barrels” and how these evolved in the oil market. They look at algorithmic oil trading and geopolitical risk premium, as well as the complex relationship between oil prices, inflation, interest rates and the US dollar. They debate the growth potential of option trading in the oil market and the implications therein, before concluding with some thoughts on what all these mean for oil market volatility moving forward.
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algorithmic trading , Financial barrels , Financial positioning , Inflation , interest rates , Macroeconomy , Oil derivatives , Oil Markets , oil price , Quantitative trading , speculation , US dollar