Vol. 4, Issue 3 (2018)
Conceptual methods of supply and delivery of crude oil by using of financial derivatives
Author(s): Zahra Ghadiri, Dr. G Kotreshwar
Abstract: Since many years, the most important part of Iran's exchange and budget revenues came from the income of export of oil and its products. in order to realize a country's economic growth and development, the National Iranian Oil Company started to use financial derivatives for supplying and presenting oil and its products within the frame of the Islamic Republic of Iran's policies. Using these tools with a risk management approach can consolidate the incomes of currency revenues caused by the sale of oil in country's budget figures. This paper examines the different types of oil trade. As follow up it introduces the strategies of using financial derivatives to reduce the price fluctuation risk and limit the need of cash in oil transactions.