Home  Journals  Finance and Credit  21(453) - 2011 June

Self-similarity of oil prices and fractal forecast methods

Available online: 7 June 2011

Subject Heading: PRICE FORMATION

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This work shows the self-similar behavior pattern of oil prices in 2009 and 2010. The work gives reasons for the fractal behavior resulted from the self-similarity of the price behavior curves. The work gives a multifractal dynamics definition as well as the basic definition methods of oil price behavior and prediction. We have compared the forecast range of oil prices as of the end of 2009 - 2010 with the actual data; the comparison has shown a good fit of those data. Within the multifractal dynamics framework there has been considered a question of present interest for international economics in reference to such an effect as an «oil market bubble».

Keywords: self-similarity, fractal, dynamics, oil price, forecast

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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