Global Finance: Geography of Commodity Markets (Oil Trading)

In the history of economic geography research, much has been invested in the study of where commodities are produced, consumed and traded. Locational theories and commodity chains allow us to map locations and linkages of these commodity-related operations. These studies, more importantly, seek to understand the reasons for their location and corresponding impacts on society, economy and politics.

Financial systems and markets are of extreme importance in the allocation and distribution of money and funds. Financial products and services have since then diversified and have become more complex. The financial commodity markets though young and dynamic, have evolved significantly over the past several years. Financial commodity markets serves as a platform for trading of agriculture products and also oil, gas and metals. Through financial commodity markets, natural produce such as oil is commodified, financialized and traded through derivatives such as future contracts and are strictly defined by price, time, market speculations and information.

This research project is focused on uncovering the market dynamics and flows of commodity trade and also seeking to address on an old established geographical issue of the commodification of nature as it takes on new forms and flows through the financial commodity markets via commodity fiction. I argue that study of financial commodity markets and activities are important to the understanding of economic negotiations and flows in the modern era and that its inherent geographies have impacts on the way economic activities are organized and executed.

Keywords: commodification, financialization, oil, commodity markets and flows