Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

The Sudden Effects of Crude Oil Futures

Authors
Yiyang Piao1, *, , Muzhen Ai2, , Yirun Mao3,
1The School International Business, Brandeis University, Waltham, 02453, United States.
2Revelle College, University of California, San Diego, La Jolla, 92092, United States.
3Faculty of Art and Science, University of Toronto, Toronto, Ontario, M5S 1A1, Canada.

These authors contributed equally

*Corresponding author. Email: yiyangpiao@brandeis.edu
Corresponding Author
Yiyang Piao
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.063How to use a DOI?
Keywords
crude oil futures; sudden effects; Yuan You Bao failure; Russia-Saudi Arabia oil price war; Suez Canal obstruction
Abstract

The sudden effect of crude futures oil refers to specific events that lead to significant fluctuation in the price of the futures. Event analysis on major occurrences paves us a path to avoid these failures. This article aims to investigate the causality of event-related price vacillations on crude oil. Specifically, this study inspects recent major crude oil price drop incidents, including the Yuan You Bao Failure, the Russia-Saudi Arabia oil price war, and the Suez Canal obstruction. The causes range from human errors on policy differences to naturally occurred disasters and national conflicts. In detail, the Yuan You Bao failure results from a mistake on the Bank of China’s financial product dropping below 0 in the Chicago Mercantile Exchange. Besides, the sudden disagreement on supply and demand gives rise to the revenging increase in crude oil production between Russia and Saudi Arabia. Additionally, the Suez Canal Obstruction is ascribed to Ever Given’s container ship running aground and blocking the canal after an unpredicted sandstorm. Apart from the events’ unpredictability, it finds general flaws in human regulations and market supervision. The comprehensive analysis indicates the importance of law implementations relating to policy regulations on crude oil prices. These results shed light for investors to understand specific events’ effects on making decisions and offer solutions for the government in emergency circumstances.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
10.2991/assehr.k.211209.063
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.063How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Yiyang Piao
AU  - Muzhen Ai
AU  - Yirun Mao
PY  - 2021
DA  - 2021/12/15
TI  - The Sudden Effects of Crude Oil Futures
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 377
EP  - 382
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.063
DO  - 10.2991/assehr.k.211209.063
ID  - Piao2021
ER  -