Topic
Spot contract
About: Spot contract is a research topic. Over the lifetime, 3437 publications have been published within this topic receiving 91599 citations.
Papers published on a yearly basis
Papers
More filters
TL;DR: In this paper, a new concept of electricity pricing referred to as "spot pricing" is presented and a set of rates related to optimal spot prices are proposed and their applicability is discussed in view of different customer characteristics, metering, and communication costs.
Abstract: A new concept of electricity pricing referred to as "spot pricing" is presented. Spot pricing is shown to encompass and achieve more fully the objectives of load management techniques and other rate structures proposed so far. The contribution of this paper is the derivation of optimal spot prices and a discussion of and proposals on a number of implementation issues which arise when the theory of spot pricing is turned into practice. A set of rates related to optimal spot prices are proposed and their applicability is discussed in view of different customer characteristics, metering, and communication costs. The impact of spot pricing on line losses and reactive energy, the quality of supply and rationing is elaborated. Issues related to customer response, utility revenues, investments and generation deregulation are also discussed.
342 citations
TL;DR: In this article, the impact of wind power forecasts on the price distribution is investigated and the revealed effects are likely to be observable and qualitatively similar in other day-ahead electricity markets significantly penetrated by wind power.
341 citations
TL;DR: This paper analyzed how institutional investors entering commodity futures markets, referred to as the financialization of commodities, affect commodity prices and found that all commodity futures prices, volatilities, and correlations go up with financialization, but more so for index futures than for nonindex futures.
Abstract: We analyze how institutional investors entering commodity futures markets, referred to as the financialization of commodities, affect commodity prices. Institutional investors care about their performance relative to a commodity index. We find that all commodity futures prices, volatilities, and correlations go up with financialization, but more so for index futures than for nonindex futures. The equity-commodity correlations also increase. We demonstrate how financial markets transmit shocks not only to futures prices but also to commodity spot prices and inventories. Spot prices go up with financialization, and shocks to any index commodity spill over to all storable commodity prices.
341 citations
TL;DR: In this paper, the authors introduce uncertainty and characterize oil wells as call options and show that production occurs only if discounted futures are below spot prices, production is non-increasing in the riskiness of future prices, and strong backwardation emerges if the riskier of future price is sufficiently high.
Abstract: Oil futures prices are often below spot prices. This phenomenon, known as strong backwardation, is inconsistent with Hotelling's theory under certainty that the net price of an exhaustible resource rises over time at the rate of interest. We introduce uncertainty and characterize oil wells as call options. We show that (1) production occurs only if discounted futures are below spot prices, (2) production is non-increasing in the riskiness of future prices, and (3) strong backwardation emerges if the riskiness of future prices is sufficiently high. The empirical analysis indicates that U.S. oil production is inversely related and backwardation is directly related to implied volatility.
330 citations
TL;DR: In this article, the authors address some of the key questions that arise in forecasting the price of crude oil and evaluate the sensitivity of a baseline oil price forecast to alternative assumptions about future oil demand and oil supply conditions.
Abstract: We address some of the key questions that arise in forecasting the price of crude oil. What do applied forecasters need to know about the choice of sample period and about the tradeoffs between alternative oil price series and model specifications? Are real and nominal oil prices predictable based on macroeconomic aggregates? Does this predictability translate into gains in out-of-sample forecast accuracy compared with conventional no-change forecasts? How useful are oil futures prices in forecasting the spot price of oil? How useful are survey forecasts? How does one evaluate the sensitivity of a baseline oil price forecast to alternative assumptions about future oil demand and oil supply conditions? How does one quantify risks associated with oil price forecasts? Can joint forecasts of the price of oil and of U.S. real GDP growth be improved upon by allowing for asymmetries?
329 citations