Oil market financialisation and Russian Government budget hedging
https://doi.org/10.17747/2078-8886-2017-6-10-14
Abstract
Market financialisation radically changes the process of oil pricing and results in increase of price volatility. Normal contango situation in financial markets is favorable for government risk hedging. Optimal hedging strategy depends on derivatives’ market conditions, but the recommended contract is put/spread option. Budget hedging may be beneficial for Government as it permits to include oil price in the process of budget planning more accurately.
About the Authors
V. V. Bushuev
Engineering Academy, Russian Academy of Natural Sciences, Institute of Energy Strategy (CJSC “GU IES”)
Russian Federation
Competing Interests: Doctor of Engineering, Prof., full member of the Engineering Academy and the Russian Academy of Natural Sciences, laureate of the Award of the RF Government in Science and Engineering, Honored Energy Worker of the USSR, General Director of the Institute of Energy Strategy (CJSC “GU IES”). Research interests: world energy market.
Russian Federation
Competing Interests: Doctor of Engineering, Prof., full member of the Engineering Academy and the Russian Academy of Natural Sciences, laureate of the Award of the RF Government in Science and Engineering, Honored Energy Worker of the USSR, General Director of the Institute of Energy Strategy (CJSC “GU IES”). Research interests: world energy market.
I. V. Bushuev
Koch Supply & Trading (USA)
Russian Federation
PhD, Head of Derivatives Department of Koch Supply & Trading (USA). Research interests: derivatives market pricing.
Russian Federation
PhD, Head of Derivatives Department of Koch Supply & Trading (USA). Research interests: derivatives market pricing.
D. P. Zamyatina
FGBOU VOT “Lomonosov Moscow State University”
Russian Federation
A student of the Faculty of Economics at the FGBOU VOT “Lomonosov Moscow State University”. Research interests: world oil prices.
Russian Federation
A student of the Faculty of Economics at the FGBOU VOT “Lomonosov Moscow State University”. Research interests: world oil prices.
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Review
For citations:
Bushuev V.V., Bushuev I.V., Zamyatina D.P. Oil market financialisation and Russian Government budget hedging. Strategic decisions and risk management. 2017;(6):10-14. (In Russ.) https://doi.org/10.17747/2078-8886-2017-6-10-14
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