Equilibrium Commodity Prices with Irreversible Investment and Non-Linear Technologies
The paper presents an equilibrium model of commodity spot and futures prices for a commodity whose primary use is as an input to production, such as oil. Empirical evidence suggests that commodity prices behave differently than standard financial asset prices. The evidence also suggests that there are marked differences across types of commodity prices.
Link
http://www.realoptions.org/papers2004/CasassusEqCom7.pdf