Price Forecasting of Crude Oil Using Hybrid Machine Learning Models

Crude oil is a widely recognized, indispensable global and national economic resource. It is significantly susceptible to the boundless fluctuations attributed to various variables. Despite its capacity to sustain the global economic framework, the embedded uncertainties correlated with the crude oil markets present formidable challenges that investors must diligently navigate. In this research, we propose a hybrid machine learning model based on random forest (RF), gated recurrent unit (GRU), conventional neural network (CNN), extreme gradient boosting (XGBoost), functional partial least squares (FPLS), and stacking. This hybrid model facilitates the decision-making process related to the import and export of crude oil in India. The precision and reliability of the different machine learning models utilized in this study were validated through rigorous evaluation using various error metrics, ensuring a thorough assessment of their forecasting capabilities. The conclusive results revealed that the proposed hybrid ensemble model consistently delivered effective and robust predictions compared to the individual models.

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Publication Details

Journal
Journal of risk and financial management
Published
2025-06-21
DOI
https://doi.org/10.3390/jrfm18070346
Citations
6
Primary Topic
Market Dynamics and Volatility
Type
article
Field-Weighted Citation Impact
18.79
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article

Price Forecasting of Crude Oil Using Hybrid Machine Learning Models

Pradeep Malik, Haresh Kumar Sharma, Jyoti Choudhary, Saibal Majumder
6 citations
Journal of risk and financial management
Market Dynamics and Volatility
18.79
article

Price Forecasting of Crude Oil Using Hybrid Machine Learning Models

Pradeep Malik, Haresh Kumar Sharma, Jyoti Choudhary, Saibal Majumder
article en
6 citations

Abstract

Crude oil is a widely recognized, indispensable global and national economic resource. It is significantly susceptible to the boundless fluctuations attributed to various variables. Despite its capacity to sustain the global economic framework, the embedded uncertainties correlated with the crude oil markets present formidable challenges that investors must diligently navigate. In this research, we propose a hybrid machine learning model based on random forest (RF), gated recurrent unit (GRU), conventional neural network (CNN), extreme gradient boosting (XGBoost), functional partial least squares (FPLS), and stacking. This hybrid model facilitates the decision-making process related to the import and export of crude oil in India. The precision and reliability of the different machine learning models utilized in this study were validated through rigorous evaluation using various error metrics, ensuring a thorough assessment of their forecasting capabilities. The conclusive results revealed that the proposed hybrid ensemble model consistently delivered effective and robust predictions compared to the individual models.

Journal of risk and financial managementVol. 18(7)
Institute of Management Technology (IN), Shree Guru Gobind Singh Tricentenary University (IN)
Openalex Percentile: Top 1%
Market Dynamics and Volatility
18.79
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