The Sudden Effects of Crude Oil Futures

Yiyang Piao; Muzhen Ai; Yirun Mao

doi:10.2991/assehr.k.211209.063

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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.211209.063 How 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.
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: 978-94-6239-483-4
ISSN: 2352-5428
DOI: 10.2991/assehr.k.211209.063 How to use a DOI?
Open Access: This is an open access article under the CC BY-NC license.

Cite this article

ris enw bib

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  -

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