PREDICTION OF CRUDE OIL PRICES USING SVR WITH GRID SEARCH CROSS

Abstract

Crude oil is the world's leading fuel, and its prices have a big impact on the global
environment, economy as well as oil exploration and exploitation activities. Oil price
forecasts are very useful to industries, governments and individuals. Although many methods
have been developed for predicting oil prices, it remains one of the most challenging
forecasting problems due to the high volatility of oil prices forecasting models that predict
future events are used in numerous fields such as economics and science because they are
useful tools in decision making. A perfect forecast provides insight into the implications of
an action or inaction and serves as a metric to judge one’s ability to influence future events,
The world's environment is affected by the oil price falling. With the drop of oil prices, the
fuel bills are lowered. As a result, consumers are very likely to use more oil and thus increase
the carbon emission. In addition, there is less incentive to develop renewable and clean
energy resources. On the other hand, sustained low oil prices could lead to a drop in global oil
and gas exploration and exploitation activities. Fluctuating oil prices also play an important
role in the global economy The fall in oil prices would result in a modest boost to global
economic activity, although the owners of oil sectors suffer income losses. Recent
research from the World B an shows that for every 30% decline of oil prices, the global GDP
(Gross Domestic Product) would be increased by 0.5%. At the same time, the drop of oil
prices would reduce the cost of living, and hence the inflation rate would fall. So there is a
chance of prediction of the Proper and most approximate prediction in order to fix the
situation if any occurs.