Analysis of timeliness of oil price news information based on SVM

Lu Tao Zhao*, Guan Rong Zeng

*Corresponding author for this work

    Research output: Contribution to journalConference articlepeer-review

    15 Citations (Scopus)

    Abstract

    International oil price forecasting has always been an important and difficult issue. With the renovation of big data technology, it is a new idea to correct and improve the oil price forecasting model by collecting and extracting network news information. However, due to timeliness and other complex factors of the network news, the ability of online news to predict oil prices is unstable. In this paper, a novel method based on SVM (support vector machines) is proposed to explore the timeliness of news towards oil price. The timeliness of news can be explained by the accuracy of SVM. A multi-scale trend discovery method is proposed to more flexibly extract oil price trends at different scales and in different directions. The news texts are marked in 82 different ways. With the help of SVM, the text information is directed and extracted, and the ability of the news to describe fluctuations in oil price trends is reflected by the quality indicators of classification. The empirical results show that the new multi-scale trend discovery method has high reliability. The ability of news to describe the short-term oil price trend only lasts for about one week, and the relatively long-term trend can be maintained for two or even three weeks. News is more able to express information on relatively long-term trends. In addition, information described in the news is more likely to have an impact on the future rather than on the volatility of past oil prices. This study of the interactive relationship between news texts and oil price trends is a powerful support for the application of news texts to forecast oil prices. At the same time, it is also a powerful complement to the study of discrete correlations and interactions.

    Original languageEnglish
    Pages (from-to)4123-4128
    Number of pages6
    JournalEnergy Procedia
    Volume158
    DOIs
    Publication statusPublished - 2019
    Event10th International Conference on Applied Energy, ICAE 2018 - Hong Kong, China
    Duration: 22 Aug 201825 Aug 2018

    Keywords

    • International Oil Price
    • Text Mining
    • Timeliness
    • Trend

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