Virtual Barrels: Quantitative Trading in the Oil Market (Springer Texts in Business and Economics) 2023rd Edition

Definitely recommended for a number guy when trying to understand how to trade commodities!

I've traded commodities for decades, but until I read this book I had no idea how much I was missing. I understand the drivers of commodity returns, but the 'quantamentals' that the author goes into deep detail on represent a huge advance for me in my understanding.This is not just an academic's treatise on 'how it ought to work.' It's a practitioner's encyclopedia - written at a very high, academic-like level - about how it DOES work.Don't trade another contract until you read this book. After Bouchouev draws back the curtain, you'll wonder how much you left on the table before.

It is a great book written by an oil trading veteran.The book has a good balance between fundamental and quantitative sides of oil trading, easy to read, highly recommended for both academia and practitioners.

Clear explanations. Detailed math from an experienced practioner

Clear, detailed and highly valuable. A great resource from an expert in the field. Highly recommend.

One of the best energy (and energy options) book on the street. Ilia's pedigree and energy market knowledge is second to none.1) Ilia is the former President of Koch Global Partners where he launched and managed the global derivatives trading business for over 20 years with very strong risk adjusted returns.2) He regularly consults for OPEC and energy companies, they value his unique insights into energy markets.3) He teaches math at NYU and CMU - giving back to the academia.4) Ilia has a Ph.D. in applied mathematics and a very strong educational background.Apart from deep quantitative understanding of oil markets, Ilia is the foremost expert in energy options trading. He built the market for calendar spread options (CSO options - energy trading) while at Koch and has a very deep understanding of volatility. He has also explored applying optionality volatility learnings from one asset class to another. E.g. cross applying CSO option concepts to interest rate curve caps and vice versa.This book is a very valuable asset for anyone trying to better understand energy markets - which is one of the largest and very important macro asset classes. Highly recommend this book.

“Virtual Barrels” stands out as an indispensable read for anyone serious about oil trading. While “Oil 101” has long been regarded as the foundational text for understanding the industry’s fundamentals, “Virtual Barrels” takes the torch forward, capturing the seismic shifts and latest developments that have redefined the trading landscape over the past decade.Published twelve years after “Oil 101,” this book transcends the basics and delves into the evolving dynamics of modern oil markets. It brilliantly bridges the gap between traditional trading heuristics and the more technical, rigorous approaches now emerging in the field. Even for those engaged in discretionary futures trading, “Virtual Barrels” is a must-read, as it translates complex, nuanced trading practices into clear, actionable insights backed by data and analysis. For options traders and market makers, the book is even more invaluable, offering a comprehensive guide to navigating today’s increasingly sophisticated market structures.In a market that has often felt fragmented and siloed, “Virtual Barrels” provides a much-needed common language and framework. It captures the transition from the traditional, sometimes insular methods of fundamental PMs to a more standardized, technology-driven approach. This book serves not just as a guide but as a benchmark that brings clarity and structure to the diverse ways of engaging in oil trading today, making it an essential read for practitioners across the spectrum.

This book offers a comprehensive exploration of trading energy derivatives, making it an invaluable resource for both newcomers and seasoned professionals alike. From its insightful introduction to energy markets to its detailed discussions on storage theory, hedging and speculation dynamics, and the complexities of non-linear derivatives, it covers a wide array of topics essential for understanding and navigating this intricate field. Moreover, the author's accessible writing style ensures that even those with limited prior knowledge can grasp the evolution of energy markets. Overall, this text is not only informative but also engaging, making it a must-read for anyone interested in the world of energy trading.