A Model for the Global Crude Oil Market Using a Multi-Pool MCP Approach

This paper proposes a partial equilibrium model to describe the global crude oil market. Pricing on the global crude oil market is strongly influenced by price indices such as WTI (USA) and Brent (Northwest Europe). Adapting an approach for pool-based electricity markets, the model captures the particularities of these benchmark price indices and their influence on the market of physical oil. This approach is compared to a model with bilateral trade relations as is traditionally used in models of energy markets. With these two model approaches, we compute the equilibrium solutions for several market power scenarios to investigate whether the multi-pool approach may be better suited than the bilateral trade model to describe the crude oil market. The pool-based approach yields, in general, results closer to observed quantities and prices, with the best fit obtained by the scenario of an OPEC oligopoly. We conclude that the price indices indeed are important on the global crude market in determining the prices and flows, and that OPEC effectively exerts market power, but in a non-cooperative way.crude oil, market structure, cartel, pool market, simulation model

GRB beaming and gravitational-wave observations

Using the observed rate of short-duration gamma-ray bursts (GRBs) it is possible to make predictions for the detectable rate of compact binary coalescences in gravitational-wave detectors. These estimates rely crucially on the growing consensus that short gamma-ray bursts are associated with the merger of two neutron stars or a neutron star and a black hole, but otherwise make no assumptions beyond the observed rate of short GRBs. In particular, our results do not assume coincident gravitational wave and electromagnetic observations. We show that the non-detection of mergers in the existing LIGO/Virgo data constrains the progenitor masses and beaming angles of gamma-ray bursts. For future detectors, we find that the first detection of a NS-NS binary coalescence associated with the progenitors of short GRBs is likely to happen within the first 16 months of observation, even in the case of a modest network of observatories (e.g., only LIGO-Hanford and LIGO-Livingston) operating at modest sensitivities (e.g., advanced LIGO design sensitivity, but without signal recycling mirrors), and assuming a conservative distribution of beaming angles (e.g. all GRBs beamed at \theta=30 deg). Less conservative assumptions reduce the waiting time until first detection to weeks to months. Alternatively, the compact binary coalescence model of short GRBs can be ruled out if a binary is not seen within the first two years of operation of a LIGO-Hanford, LIGO-Livingston, and Virgo network at advanced design sensitivity. We also demonstrate that the rate of GRB triggered sources is less than the rate of untriggered events if \theta<30 deg, independent of the noise curve, network configuration, and observed GRB rate. Thus the first detection in GWs of a binary GRB progenitor is unlikely to be associated with a GRB