Proceedings of the External Challenges and Risks for Russia in the Context of the World Community’s Transition to Polycentrism: Economics, Finance and Business (ICEFB 2019)

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The Role of the Monetary Policy of the US Federal Reserve in Regulating Global Oil Prices

Authors
Larisa G. Chuvakhina
Corresponding Author
Larisa G. Chuvakhina
Available Online December 2019.
DOI
10.2991/icefb-19.2019.36How to use a DOI?
Keywords
financialization; the US Federal Reserve; the global oil market; oil market entities; OPEC +; oil quotes; oil futures
Abstract

The increasing role of the financial sector has become the objective reality of the modern world. The process of financialization has led to the transformation of commodity markets into financial ones. Pricing in the world of finance is based primarily on the volume of money supply and the availability of funds for investors and speculators, while the fundamental ratio of demand and supply of a particular product is fading into the background. Oil, like most commodity assets, has long become an exchange-traded financial instrument, and the volume of operations of hedge funds and investment banks with oil futures exceeds the turnover in the physical oil market by an order of magnitude. The regulator of operations with “paper” oil is the US Federal Reserve. The dynamics of oil quotes largely depend on the direction of movement of the Fed key rate in the direction of increasing or decreasing. The study allows us to identify factors and conditions for the formation of modern "oil reality", to determine the main features of the paradigm of development of the world oil market, its transformation in the direction of increasing competition between the main trading players.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the External Challenges and Risks for Russia in the Context of the World Community’s Transition to Polycentrism: Economics, Finance and Business (ICEFB 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
December 2019
ISBN
10.2991/icefb-19.2019.36
ISSN
2352-5428
DOI
10.2991/icefb-19.2019.36How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Larisa G. Chuvakhina
PY  - 2019/12
DA  - 2019/12
TI  - The Role of the Monetary Policy of the US Federal Reserve in Regulating Global Oil Prices
BT  - Proceedings of the External Challenges and Risks for Russia in the Context of the World Community’s Transition to Polycentrism: Economics, Finance and Business (ICEFB 2019)
PB  - Atlantis Press
SP  - 142
EP  - 145
SN  - 2352-5428
UR  - https://doi.org/10.2991/icefb-19.2019.36
DO  - 10.2991/icefb-19.2019.36
ID  - Chuvakhina2019/12
ER  -