February 6, 2007

Temperature, Oil Prices, and Weather Derivatives

Lynne Kiesling Ooooh, baby, it’s cold outside! The cold snap affecting a large proportion of the U.S. population is placing upward pressure on oil prices, particularly because the cold snap is affecting U.S. regions that rely more on home heating oil than natural gas or electric heating: The onset of cold weather in the U.S. …

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