Machine Learning Heating Oil Price Forecasts

Historically speaking, a significant number of market players have put a great deal of significance on the capacity to reliably estimate the prices of energy commodities. In order to discover a solution to the issue, our inquiry looks into the monthly price of heating oil as it applies to New York Harbor No. 2. The price series under investigation has major economic repercussions, and the sample under review runs nearly 40 years, from June 1986 to March 2024. In this scenario, cross-validation methods and Bayesian optimization methodologies are applied to develop Gaussian process regression models, which are used to produce price estimates. For the out-of-sample testing period of September 2016–March 2024, our empirical prediction technique produces fairly accurate pricing projections, as indicated by the relative root mean square error of 1.4817%. Price prediction models give governments and investors with the knowledge they need to make smart judgements regarding the heating oil market.

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Publication Details

Journal
New Mathematics and Natural Computation
Published
2025-06-20
DOI
https://doi.org/10.1142/s1793005727500141
Citations
17
Primary Topic
Market Dynamics and Volatility
Type
article
Field-Weighted Citation Impact
53.23
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article

Machine Learning Heating Oil Price Forecasts

Xiaojie Xu, Bingzi Jin
17 citations
New Mathematics and Natural Computation
Market Dynamics and Volatility
53.23
article

Machine Learning Heating Oil Price Forecasts

Xiaojie Xu, Bingzi Jin
article en
17 citations

Abstract

Historically speaking, a significant number of market players have put a great deal of significance on the capacity to reliably estimate the prices of energy commodities. In order to discover a solution to the issue, our inquiry looks into the monthly price of heating oil as it applies to New York Harbor No. 2. The price series under investigation has major economic repercussions, and the sample under review runs nearly 40 years, from June 1986 to March 2024. In this scenario, cross-validation methods and Bayesian optimization methodologies are applied to develop Gaussian process regression models, which are used to produce price estimates. For the out-of-sample testing period of September 2016–March 2024, our empirical prediction technique produces fairly accurate pricing projections, as indicated by the relative root mean square error of 1.4817%. Price prediction models give governments and investors with the knowledge they need to make smart judgements regarding the heating oil market.

New Mathematics and Natural Computation
Advanced Micro Devices (Canada) (CA), North Carolina State University (US), Advanced Micro Devices (United States) (US)
Openalex Percentile: Top 0%
Market Dynamics and Volatility
53.23
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