People, companies and even countries want to know future price of oil because oil price influences what they do.
Individuals use the information for his or her investing such as whether to buy oil related shares.
Banks need it for giving out oil related loans.
Transportation companies use it to manage its fuel expenditures such as whether to buy or sell oil futures.
Oil companies need it to manage their operating and capital expenditures such as whether to drill or not to drill.
Oil exporting countries use it to determine its GDP.
Oil importing countries need it for planning its annual budget.
Perhaps the greatest role of oil price forecast is in IPOs and M&A.
26 January 2018
