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ORIGINAL RESEARCH article

Front. Energy Res.
Sec. Sustainable Energy Systems
Volume 12 - 2024 | doi: 10.3389/fenrg.2024.1289327
This article is part of the Research Topic Sustainable Planning and Life-Cycle Thinking of Energy Infrastructure, Volume II View all 4 articles

Understanding the information of shock effects between the crude oil price and tanker freight rate

Provisionally accepted
Feier Chen Feier Chen 1Juanjuan Tang Juanjuan Tang 2Jianuo Chen Jianuo Chen 3Shuo Yin Shuo Yin 4Luhui Du Luhui Du 2*Guiyuan Fu Guiyuan Fu 5*Feng Xu Feng Xu 2*Xiaofeng Liang Xiaofeng Liang 1*
  • 1 Department of Naval Architecture and Ocean Engineering, School of Naval Architecture, Ocean and Civil Engineering, Shanghai Jiao Tong University, Shanghai, China
  • 2 Shanghai Merchant Ship Design & Research Institute, Shanghai, China
  • 3 Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai, China
  • 4 School of Biomedical Engineering, Shanghai Jiao Tong University, Shanghai, Shanghai Municipality, China
  • 5 Shanghai University of Finance and Economics, Shanghai, Shanghai Municipality, China

The final, formatted version of the article will be published soon.

    We give multi-market analysis to better comprehend the information of shock effects for future market investment. Under different shock regimes, crude oil market and tanker freight rate shocks could transit bi-directly. When events occur, the crude oil market prices the expectations. However, when the actual performance of the future market differs from the traders' predictions of the future market, a price gap exists. In general, the trade opportunity is tough to catch up on because only partial information can be found. In this study, we investigate the volatility connection of multi-markets and shock effects to clarify previously undisclosed information using multi-peak analysis. The information gathered and double-checked by cargo markets, crude oil supply-demand balance, and tanker freight prices of various tanker types could assist us in identifying prospective trends and investment opportunities. The volatility of each market, as well as the correlation of multi-markets, gives insights to crude oil dealers, tanker market participants, and energy regulators.

    Keywords: Event effects, Crude oil price, Tanker freight rate, shocks, multi-markets, Expectation gap

    Received: 05 Sep 2023; Accepted: 18 Jul 2024.

    Copyright: © 2024 Chen, Tang, Chen, Yin, Du, Fu, Xu and Liang. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence:
    Luhui Du, Shanghai Merchant Ship Design & Research Institute, Shanghai, China
    Guiyuan Fu, Shanghai University of Finance and Economics, Shanghai, 200433, Shanghai Municipality, China
    Feng Xu, Shanghai Merchant Ship Design & Research Institute, Shanghai, China
    Xiaofeng Liang, Department of Naval Architecture and Ocean Engineering, School of Naval Architecture, Ocean and Civil Engineering, Shanghai Jiao Tong University, Shanghai, 200240, China

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.