Meet OilX – Startup Using AI to Transform the Oil Trade

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Artificial intelligence has been making inroads into the oil and gas industry for a while now after the industry realized all the benefits it could reap from the deployment of these technologies. Now, it has begun changing oil and gas trading as well.

First of all, it bears noting the term artificial intelligence has developed into an umbrella term for a host of predictive and analytical technologies that are a far cry from the average layman’s idea of AI, that is, machines capable of independent thought. We are not there yet. Yet the technology has advanced sufficiently to begin transforming the oil and gas industry, including the trade of these commodities and products.

For now, the space of AI-enabled energy trading providers is relatively empty. One notable recent addition to it was OilX, an oiltech startup that provides traders with real-time oil analytics based on a combination of satellite tracking data and reports from various official organizations, including customs, JODI, and statistics agencies.

Thanks to AI, the OilX platform can process and offer traders a lot more comprehensive and hence more reliable oil fundamentals data in a fraction of the time traditional oil supply and demand analysis takes.

Speed and accuracy are what, according to OilX’s founders, makes the platform unique and these two features also highlight the top priorities of modern-day traders generally. Yet this is only a nascent market with a huge potential.

As OilX’s chief executive Florian Thaler told Oilprice, “Theoretically, AI-enabled solutions can be found everywhere in a trading organisation, from front to middle to back office in trading operations. Ranging from analytics, trade execution, risk management, HR. We believe that the change is coming from a series of small, highly focused and specialized solutions which – when put together – form a comprehensive solution.”

“Price suggestion has clearly become a key factor [for AI] where for large trades and complex derivatives it used to take a while to price trades,” a senior Citi executive told S&P Global Platts at an industry event last November. AI is already helping traders make better decisions based on price forecasts made by the algorithms, Sandeep Arora said.

And it goes beyond just price forecasts. Artificial intelligence is also being used to help humans learn how to better predict prices.

Read the source article in OilPrice.com.