Using futures contracts in hedging Jordanian petroleum purchases against price volatility
Other Title(s)
استخدام العقود المستقبلية في تحويط مشتريات النفط الأردنية ضد مخاطر تقلب الأسعار.
Dissertant
Thesis advisor
Comitee Members
al-Tarawinah, Midhat Ibrahim
al-Zubaydi, Hamzah Mahmud
al-Shawawrah, Faysal Mahmud Muslim
University
Mutah University
Faculty
Faculty of Business
Department
Department of Management Information Systems
University Country
Jordan
Degree
Master
Degree Date
2008
English Abstract
This study aims to investigate whether using futures contracts will reduce the Jordanian imported petroleum price risk and decrease the Jordanian petroleum purchases invoice.
To achieve the objectives of this study, ten years-hedge simulation conducted on the real imported quantities to generate assumed comparable cases for the unheeded and hedged costs of the Jordanian monthly needs.
The study sample consisted from monthly imported quantities of crude oil for Jordan during the 1998-2007 period, Weekly spot prices of Saudi Arabian light Crude and the daily futures prices of NYMEX Cushing OK Crude Oil Futures Contract 1 and Contract4 over that period.
Data were also obtained from the following sources: Jordan Petroleum Refinery Company, New York Mercantile Exchange NYMEX, and U.S.
Energy Information Administration EIA.
Constant Cross hedge strategy conducted for hedging the Jordanian imported petroleum costs.
The NYMEX Cushing OK Crude Oil Futures Contract 1 and Contract4 employed to hedge the Saudi Arabian light crude over the study horizon.
The results demonstrate that the constant cross hedge strategy with the NYMEX Cushing OK Crude Oil Futures Contract4 proved to be successful in hedging the price risk of the Jordanian imported petroleum and will decrease the Jordanian petroleum purchases invoice.
On the other hand, the constant cross hedge strategy with the NYMEX Cushing OK Crude Oil Futures Contract 1 will increase the price risk of the Jordanian imported petroleum, and will decrease the Jordanian petroleum purchases invoice.
The researcher recommends the energy policymakers in Jordan to assess the merits of futures contracts for managing risk related with the petroleum price risk.
The researcher also recommends studying the effect of other derivatives tools, like swaps and option futures on managing oil price risk.
Main Subjects
Economics & Business Administration
Topics
No. of Pages
96
Table of Contents
Table of contents.
Abnstract.
Chapter One : Theoretical background.
Chapter Tow : Literature review and previous studies.
Chapter Three : Design and methodology.
Chapter Four : Findings and discussion.
Chapter Five : Conclusions and recommendations.
References.
American Psychological Association (APA)
al-Rawwad, Muhammad Murdi. (2008). Using futures contracts in hedging Jordanian petroleum purchases against price volatility. (Master's theses Theses and Dissertations Master). Mutah University, Jordan
https://search.emarefa.net/detail/BIM-306814
Modern Language Association (MLA)
al-Rawwad, Muhammad Murdi. Using futures contracts in hedging Jordanian petroleum purchases against price volatility. (Master's theses Theses and Dissertations Master). Mutah University. (2008).
https://search.emarefa.net/detail/BIM-306814
American Medical Association (AMA)
al-Rawwad, Muhammad Murdi. (2008). Using futures contracts in hedging Jordanian petroleum purchases against price volatility. (Master's theses Theses and Dissertations Master). Mutah University, Jordan
https://search.emarefa.net/detail/BIM-306814
Language
English
Data Type
Arab Theses
Record ID
BIM-306814
