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WebDec 5, 2024 · Nowadays, in unstable economic environment, oil refining company is facing fluctuating crude oil price that causes unstable profit margin. Fluctuating crude oil price leads to difficulty in forecasting raw material procurement. Inaccurate forecast leads to inefficient decision making in optimizing refining company profit margin. In order to overcome an … WebJun 21, 2016 · Oil price fluctuations have major impact on the overall economy and finally will lead to increase in the inflation rate. It is important to describe these oil price fluctuations mathematically. This study aims to describe the above phenomena using geometric Brownian motion. Two crude oil prices, namely WTI and Brent have been analyzed …
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