NDSU Agribusiness and Applied Economics Department
Petroleum historically has been and remains the most important source of primary energy consumption in the U.S.
Given this importance of petroleum for functioning of the overall U.S. economy, we must understand better to what degree futures markets stabilize or destabilize spot oil prices in the short and long run. Considering regional diversity of U.S. petroleum markets and the economy overall, regional analysis of this relationship between oil futures and spot prices in the U.S. is warranted.
I and my former graduate student Cole Goetz addressed this important issue in a paper recently published in Applied Energy, the world’s single most influential academic journal in the area of energy studies. Here, in nontechnical terms, are our findings and implications