A Review on Artificial Intelligence Methodologies for the Forecasting of Crude Oil Price

Abstract

AbstractWhen crude oil prices began to escalate in the 1970s, conventional methods were the predominant methods used in forecasting oil pricing. These methods can no longer be used to tackle the nonlinear, chaotic, non-stationary, volatile, and complex nature of crude oil prices, because of the methods’ linearity. To address the methodological limitations, computational intelligence techniques and more recently, hybrid intelligent systems have been deployed. In this paper, we present an extensive review of the existing research that has been conducted on applications of computational intelligence algorithms to crude oil price forecasting. Analysis and synthesis of published research in this domain, limitations and strengths of existing studies are provided. This paper finds that conventional methods are still relevant in the domain of crude oil price forecasting and the integration of wavelet analysis and computational intelligence techniques is attracting unprecedented interest from scholars in the domai...