Oil Prices Forecasting Geostatistics Petroleum and Natural Gas
Abstract:
Oil is one of the most volatile commodities and the oil price changes every minute with the changing geopolitical landscape around the world. Geostatistics utilizes statistical models for analyzing spatial datasets. West Texas Intermediate (WTI) crude oil price data from January 1985 to September 2015 was analyzed in this research. This project focuses on the application of a geostatistical regression-based model to quantify the magnitude of fluctuation in oil prices. The research was based on well-established principles of covariance inference and modeling, and stochastic estimation/simulation that exists in spatiotemporal geostatistics. This research provides a geostatistical approach to predict oil prices at different data points using kriging.
