Discussion Papers 821, 15 S.
Marcus Stronzik, Margarethe Rammerstorfer, Anne Neumann
2008. Sep.
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We analyze the relation between European natural gas storage facilities and price patterns at major trading points, considering the theory of storage to derive a testable hypothesis imposed by the non-arbitrage condition. To model the efficiency of the natural gas market, we apply two indirect tests absent the scarcity of European inventory data. We find that operators of storage facilities realize seasonal arbitrage profits, and that market performance overall is substantially distinct from the competitive benchmark.
Topics: Resource markets, Europe, Energy economics
JEL-Classification: Q40;L95;G13
Keywords: Storage, energy commodity, natural gas, convenience yield
Frei zugängliche Version: (econstor)
http://hdl.handle.net/10419/27344