Print
Lesson Activity 1:
1) Think about the various products derived from crude oil that you encounter on a daily basis. Other than gasoline and lubricating oil, what other distillates impact your existence?
2) We know that the amount of crude oil the US imports continues to decline due to increased domestic production, but, do you see demand increasing or, decreasing, over the next decade? What are your reasons for this stance?
Post your answers on the course Blog. Also be sure to read and comment on other students' blog entries.
Grading Criteria
You will be graded on the quality of your participation. See the grading rubric for specifics on how this assignment will be graded.
Lesson Activity 2:
Part of the overall objective of this course is to have you understand how the market functions in terms of determining price and how it trades in general. To truly appreciation this, you have to begin to think like an energy commodities Trader. To do so, you must consider the market factors that they research before making any Buy/Sell decisions.
In Lesson 2, you were presented with a number of “fundamental” factors that can influence the price of crude oil and/or natural gas.
Beginning with Lesson 3 of this semester and, continuing until further notice, you will submit examples of these factors on the Course Blog each week by 11:59 p.m., Eastern US Time, on Sundays.
You are to submit fundamental factors for both crude and natural gas and give your opinion on how each could impact prices, i.e., will prices increase or decrease as a result of what you have reported?
Grading Criteria
- 30 points for the overall submission itself.
- 0-5 points for each of the (14) factors presented in Lesson 2. A missing factor will receive -0- and a factor that is relevant and justifies your rationale for price increase/decrease will receive 5 points. Thus, the total factors presented, which coherently demonstrate an understanding of their influence on price, will receive 100%
An example of a complete answer would be:
Natural Gas
- The Energy Information Agency’s Weekly Natural Gas Storage Report showed an injection of +50 Bcf. This was below the expectation of +60 Bcf, therefore, it was seen as “bullish” since less supply was put into storage implying that demand was higher than expected. Prices would increase under this scenario.