The relationship between U.S. retail gasoline and crude oil prices during the Great Recession: “Rockets and feathers” or “balloons and rocks” behavior?

2016 ◽  
Vol 55 ◽  
pp. 200-210 ◽  
Author(s):  
Dale S. Bremmer ◽  
Randall G. Kesselring
Keyword(s):  
Crude Oil ◽  
Great Recession ◽  
Oil Prices ◽  
The Great Recession ◽  
Retail Gasoline ◽  
Crude Oil Prices ◽  
Rockets And Feathers ◽  
The Relationship

REDUCING THE USAGE OF CRUDE OIL — WHAT CAN BE LEARNED FROM HIGHEST CRUDE CONSUMER COUNTRIES?

2012 ◽  
Vol 11 (02) ◽  
pp. 233-246
Author(s):  
BEZALEL GAVISH ◽  
ROYI GAVISH
Keyword(s):  
Crude Oil ◽  
Sharp Increase ◽  
Oil Prices ◽  
High Variability ◽  
Oil Consumption ◽  
Conservation Policies ◽  
Crude Oil Prices ◽  
Production And Consumption ◽  
Consumption Reduction ◽  
The Relationship

The production and consumption of crude oil became a major issue with the sharp increase in crude oil prices that took place during the last few months. We investigate the relationship between crude oil consumption and the GDP of the top crude oil consuming countries. The amount of GDP produced per barrel of crude oil varies significantly between different countries; the ratio is in the range of 2% to 10% of the GDP when the price of a barrel of crude oil is $100. The paper attempts to explain the high variability with the aim of learning from high GDP producers as to how they are able to generate a larger GDP per barrel of crude oil consumption. The paper also identifies a hysteresis effect in crude consumption reduction and illustrates how understanding it can lead to better production and conservation policies.

The Asymmetric Effects of Crude Oil Prices and Exchange Rates on Diesel Prices for 27 European Countries

2021 ◽  
pp. 097215092199903
Author(s):  
Ebru Yuksel Haliloglu ◽  
M. Hakan Berument
Keyword(s):  
Exchange Rates ◽  
Crude Oil ◽  
Petroleum Product ◽  
Oil Prices ◽  
Asymmetric Effects ◽  
Crude Oil Prices ◽  
Long Run ◽  
Short Run ◽  
Rockets And Feathers ◽  
Us Dollar

Many studies have examined the asymmetric effect of US dollar-denominated crude oil prices on petroleum product prices. The ‘rockets and feathers’ argument suggests that a crude price increase raises petroleum product prices more than a corresponding decrease in crude prices lowers product prices. However, for the countries that do not use the US dollar as a medium of exchange, petroleum product prices are also affected by the exchange rates. This paper analysed the asymmetric effects of both US dollar-denominated crude oil prices and exchange rates on local currency-denominated diesel prices for 27 European countries in the short run as well as long run. The overall empirical evidence suggests that, in the short run, diesel prices react more to crude oil price increases than to a decrease, parallel to the ‘rockets and feathers’ argument. However, contrary to that argument, the long-run adjustment is the opposite. As for exchange rate shocks, again the ‘rockets and feathers’ argument holds and diesel prices respond more to exchange rate depreciation than appreciation in the short and long run.

scholarly journals THE RELATIONSHIP BETWEEN CRUDE OIL PRICES AND STOCK MARKET: THE INDIAN CASE

2020 ◽  
Vol 2 (1) ◽  
pp. 1-11
Author(s):  
Premkumar Rajnathan
Keyword(s):  
Stock Market ◽  
Crude Oil ◽  
Stock Exchange ◽  
Human Life ◽  
Oil Prices ◽  
Equity Returns ◽  
Indian Economy ◽  
Crude Oil Prices ◽  
Investment And Financing ◽  
The Relationship

Crude oil is influencing every productivity activity of human life either directly or indirectly. The prices of crude oil also influence the international financial markets. This influence connects the oil market with that of capital market since stock market provides it necessary resources for investment and financing the production. In this study, the objective was to test the relationship between crude oil prices and selected sectors of Indian economy. Furthermore, the study also tests the effects of international crude oil prices on the Indian stock exchange market. The main objective was to test the conditional correlation of the crude oil price and equity returns of selected sectors of the Indian economy as well as the performance indicators of the Indian stock market using bivariate volatility models.

scholarly journals PAIN AT THE PUMP: IS THERE AN ASYMMETRIC INFLUENCE OF OIL VOLATILITY ON GASOLINE VOLATILITY IN FRANCE?

2015 ◽  
Vol 21 (2) ◽  
Author(s):  
SOFIANE ABOURA
Keyword(s):  
Crude Oil ◽  
Oil Prices ◽  
Conditional Correlation ◽  
Dynamic Conditional Correlation ◽  
Taxation Policy ◽  
Crude Oil Prices ◽  
The Us ◽  
The Government ◽  
First Time ◽  
The Relationship

<p class="ESRBODY">We investigate, for the first time, the relationship between gasoline volatility and crude oil volatility. We aim to examine if the so-called asymmetric relationship between gasoline and crude oil prices holds for volatility. The approach employed is based on the asymmetric dynamic conditional correlation model as applied to the US WTI oil volatility and the French Super Carburant 95 gasoline volatility from 1990 to 2014.</p>The results reveal that gasoline volatility tends to be overreactive to changes in crude oil volatility. Moreover, it appears that the government taxation policy might amplify the gasoline volatility

The relationship between spot and official crude oil prices

OPEC Review ◽  
1984 ◽  
Vol 8 (4) ◽  
pp. 341-349 ◽  
Author(s):  
M. Desmond Fitzgerald ◽  
Gerald Pollio
Keyword(s):  
Crude Oil ◽  
Oil Prices ◽  
Crude Oil Prices ◽  
The Relationship

Oil Prices and Economic Growth in Major Emerging Economies

2020 ◽  
pp. 1-23
Author(s):  
Emrah I Cevik ◽  
Sel Dibooglu ◽  
Tugba Kantarci ◽  
Hande Caliskan
Keyword(s):  
Crude Oil ◽  
Emerging Economies ◽  
Economic Activity ◽  
Oil Prices ◽  
Energy Prices ◽  
Empirical Results ◽  
Crude Oil Prices ◽  
Causality Tests ◽  
The Difference ◽  
The Relationship

There is a strong correlation between energy prices and economic activity. The relationship particularly holds true for crude oil as changes in oil prices are associated with changes in production costs, and economic activity also generates significant demand for energy and crude oil. This chapter examines the relationship between economic activity and crude oil prices using causality tests in the frequency domain and taking into account the difference between positive and negative changes in both oil prices and economic activity as the relationship can be asymmetric. The authors present empirical results for major emerging economies including Brazil, Russia, India, China, South Africa, and Turkey. Empirical results indicate that for most countries there is bidirectional causality between crude oil prices and economic activity whereas only negative oil price shocks seem to negatively affect economic activity.

Sign in / Sign up

Export Citation Format

Share Document