The Sudden Effects of Crude Oil Futures
These authors contributed equally
- 10.2991/assehr.k.211209.063How to use a DOI?
- crude oil futures; sudden effects; Yuan You Bao failure; Russia-Saudi Arabia oil price war; Suez Canal obstruction
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.
- © 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 -