Commodity and Energy Markets (763N1)

15 credits, Level 7 (Masters)

Spring teaching

You study and analyse the commodity markets, looking at distinctive features, complex price risks, and widespread valuation and hedging challenges.

You look at how techniques and tools from the traditional financial markets are adapted and extended and examine fundamental commodity concepts such as:

  • contango
  • backwardation
  • physical delivery and storage
  • seasonality and other prominent features of the behaviour of commodity spot and forward prices.

You study:

  • the links with supply and demand and the relationship between the physical and financial markets
  • quantitative techniques for modelling commodity price dynamics
  • pricing and hedging derivative products
  • applications to real-world problems and decisions (such as physical asset valuation, investment, operation or hedging)
  • energy, agriculturals, and metals
  • electricity and carbon emissions, with links to energy and environmental policy.

Teaching and assessment

We’re currently reviewing teaching and assessment of our modules in light of the COVID-19 situation. We’ll publish the latest information as soon as possible.

Contact hours and workload

This module is approximately 150 hours of work. This breaks down into about 34 hours of contact time and about 116 hours of independent study. The University may make minor variations to the contact hours for operational reasons, including timetabling requirements.

This module is running in the academic year 2020/21. We also plan to offer it in future academic years. It may become unavailable due to staff availability, student demand or updates to our curriculum. We’ll make sure to let our applicants know of such changes to modules at the earliest opportunity.

Courses

This module is offered on the following courses: