Since 2008, the usually negative crude oil futures spread has been positive for extended periods, raising doubts about conventional explanations. We re-examine the dynamics of the futures spread using monthly VARs on the CME WTI oil futures spread, OECD and U.S. oil and petroleum inventories and...

While speculators traditionally provide liquidity in oil futures markets, this paper re-evaluates the role of hedgers and speculators as liquidity providers and their effects on oil price volatility. By using two measures of hedging pressure that capture the liquidity provision by speculators...

This paper presents an empirical study on hedging long-dated crude oil futures options with forward price models incorporating stochastic interest rates and stochastic volatility. Several hedging schemes are considered including delta, gamma, vega and interest rate hedge. Factor hedging is...