The Politics of Oil Markets

2020 ◽  
pp. 319-342
Author(s):  
Wojtek Wolfe
Keyword(s):  
Current Model ◽  
Price Volatility ◽  
Oil Production ◽  
Future Research ◽  
Market Structures ◽  
Oil Market ◽  
Interdisciplinary Perspective ◽  
Oil Markets ◽  
The Stability

This chapter examines the politics of oil through economic, political, and geographic lenses in an effort to offer an interdisciplinary perspective on topics that have traditionally been explained through economic sources. The chapter includes an oil market description alongside several empirical cases, as an invitation for researchers to consider the functionality of oil market structures when utilizing a geopolitical lens of analysis in their future research. Politically driven state actions by key oil market actors can affect oil production, trade, and transportation activities. If oil markets are transitioning beyond the current model, then price volatility will continue to increase and test the established boundaries of existing oil markets, as well as the stability of modern commodity exchanges.

scholarly journals Analysis of Copra and Coconut Oil Markets in Mexico

2021 ◽  
Vol 14 (4) ◽  
Author(s):  
Edgar Ricardo Lagunes Fortiz ◽  
Alma A. Gómez-Gómez ◽  
Juan A. Leos-Rodríguez ◽  
José Miguel Omaña-Silvestre ◽  
Erika Lagunes-Fortiz
Keyword(s):  
Production Systems ◽  
Programming Model ◽  
Coconut Oil ◽  
Future Research ◽  
Transport Costs ◽  
Oil Market ◽  
Oil Markets ◽  
Total Profit ◽  
Alternative Sources ◽  
Intensive System

Objective: To assess the economic impact of the implementation of differentproduction systems (real, traditional, intensive and organic) on the profits of copra-producing states and major coconut oil companies.Design/Methodology/Approach: A linear programming model was formulatedwhich considered the main costs and production revenues, and the transport costs ofthe copra and coconut oil market, in order to maximize the profit of copra producersand the oil industry simultaneously.Results: The states that were most suitable in the distribution of copra wereGuerrero and Tabasco, which proved to be the main suppliers of all the productionsystems evaluated; within production systems, the intensive system presented ahigher level of profit in the scenarios raised.Study Limitations/Implications: The model considered the sale of copra as thesole income of producers, leaving aside the marketing of other products and economic transfers, thus underestimating their total profit. Future research isrequired to help collect data on alternative sources of income for producers.Findings/Conclusions: Increasing copra production without taking into account theinstalled capacity in the industry results in the creation of a copra surplus in mostproducing states, which would result in a fall in the prices of this product, thereforereducing the profit of most states.

scholarly journals Oil Market Factors as a Source of Commonality in Liquidity in International Equity Markets

2021 ◽  
Vol 14 (8) ◽  
pp. 372
Author(s):  
Abdulrahman Alhassan ◽  
Atsuyuki Naka ◽  
Abdullah Noman
Keyword(s):  
Global Economy ◽  
Equity Markets ◽  
Price Volatility ◽  
Primary Objective ◽  
Market Liquidity ◽  
Oil Price ◽  
International Equity Markets ◽  
Oil Market ◽  
Oil Markets ◽  
International Equity

When stock markets are less liquid or illiquid, investors are expected to require compensation for taking the risk of not being able to sell quickly. Many studies have documented the existence of the co-movements (commonality) of market liquidity in equity markets as a priced factor. The primary objective of this paper is to introduce the oil market as a potential source of commonality in liquidity. We hypothesize that conditions specific to the oil market can contribute to commonality in liquidity affecting both supply-side and demand-side factors because of its importance to the global economy in general. To this aim, a sample of firms is drawn from 50 countries spanning the period from January 1995 to December 2015. We examine two channels that transmit the effect of oil market movements to the liquidity commonality in international equity markets, namely, oil price returns and oil price volatility. Seemingly unrelated regressions (SUR) are utilized to estimate the effect of oil factors on commonality in liquidity. We find that the returns and volatility of oil prices explain the commonality in liquidity in countries with higher integration with oil markets. In addition, we show that the effect of oil volatility is more pronounced for net oil exporters as opposed to net oil importers after controlling for oil sensitivity. These results are robust to controlling for possible sources of commonality in liquidity as found in the literature and alternative estimation specifications.

Supplier Development at LG Electronics

2020 ◽  
Author(s):  
Hyojin Kim ◽  
Daesik Hur ◽  
Tobias Schoenherr
Keyword(s):  
Management Practice ◽  
Digital Technologies ◽  
Supply Management ◽  
Future Research ◽  
Supplier Development ◽  
Environmentally Conscious ◽  
Competitive Capabilities ◽  
The Stability ◽  
Buyer Firm

Supplier development has been a critical supply management practice since the 1990s. In many instances, it has even become imperative for buyer firms to support and prepare their supply bases for uncertain economic and market environments, socially and environmentally conscious customers, advances in digital technologies, and increasing competition. Yet, research that approaches supplier development with the objective to advance all these dimensions in an integrated fashion is scarce. This study fills this void by exploring how a buyer firm may address these emerging challenges in its supply base. Specifically, an in-depth case study of LG Electronics explores how the firm designs and operates multidimensional supplier development activities to foster the stability and sustainability of its supply base while enhancing its core suppliers’ competitive capabilities. This chapter illustrates how supplier development can be taken to the next level, presents implications for managerial practice, and outlines promising future research avenues.

scholarly journals Assessing Market Risk in BRICS and Oil Markets: An Application of Markov Switching and Vine Copula

2021 ◽  
Vol 9 (2) ◽  
pp. 30
Author(s):  
John Weirstrass Muteba Mwamba ◽  
Sutene Mwambetania Mwambi
Keyword(s):  
South Africa ◽  
Crude Oil ◽  
South African ◽  
Asset Allocation ◽  
Markov Switching ◽  
Tail Dependence ◽  
Lower Tail ◽  
Oil Market ◽  
Oil Markets ◽  
Vine Copula

This paper investigates the dynamic tail dependence risk between BRICS economies and the world energy market, in the context of the COVID-19 financial crisis of 2020, in order to determine optimal investment decisions based on risk metrics. For this purpose, we employ a combination of novel statistical techniques, including Vector Autoregressive (VAR), Markov-switching GJR-GARCH, and vine copula methods. Using a data set consisting of daily stock and world crude oil prices, we find evidence of a structure break in the volatility process, consisting of high and low persistence volatility processes, with a high persistence in the probabilities of transition between lower and higher volatility regimes, as well as the presence of leverage effects. Furthermore, our results based on the C-vine copula confirm the existence of two types of tail dependence: symmetric tail dependence between South Africa and China, South Africa and Russia, and South Africa and India, and asymmetric lower tail dependence between South Africa and Brazil, and South Africa and crude oil. For the purpose of diversification in these markets, we formulate an asset allocation problem using raw returns, MS GARCH returns, and C-vine and R-vine copula-based returns, and optimize it using a Particle Swarm optimization algorithm with a rebalancing strategy. The results demonstrate an inverse relationship between the risk contribution and asset allocation of South Africa and the crude oil market, supporting the existence of a lower tail dependence between them. This suggests that, when South African stocks are in distress, investors tend to shift their holdings in the oil market. Similar results are found between Russia and crude oil, as well as Brazil and crude oil. In the symmetric tail, South African asset allocation is found to have a well-diversified relationship with that of China, Russia, and India, suggesting that these three markets might be good investment destinations when things are not good in South Africa, and vice versa.

scholarly journals On the Stability of Social Preferences in Inter-Group Conflict: A Lab-in-the-Field Panel Study

2021 ◽  
pp. 002200272199408
Author(s):  
Robert Böhm ◽  
Jürgen Fleiß ◽  
Robert Rybnicek
Keyword(s):  
Field Study ◽  
Presidential Election ◽  
Social Preferences ◽  
Panel Study ◽  
Future Research ◽  
Group Conflict ◽  
Considerable Heterogeneity ◽  
Specific Preference ◽  
Group Members ◽  
The Stability

Despite the omnipresence of inter-group conflicts, little is known about the heterogeneity and stability of individuals’ social preferences toward in-group and out-group members. To identify the prevalence and stability of social preferences in inter-group conflict, we gather quota-representative, incentivized data from a lab-in-the-field study during the heated 2016 Austrian presidential election. We assess social preferences toward in-group and out-group members one week before, one week after, and three months after the election. We find considerable heterogeneity in individuals’ group-(in)dependent social preferences. Utilizing various econometric strategies, we find largely stable social preferences over the course of conflict. Yet, there is some indication of variation, particularly when the conflict becomes less salient. Variation is larger in social preferences toward in-group members and among specific preference types. We discuss the theoretical implications of our findings and outline potential avenues for future research.

scholarly journals ТНЕ WORLD OIL MARKET: THE SEARCH FOR BALANCE IN THE NEW "OIL" REALITY

2016 ◽  
pp. 115-124
Author(s):  
T. A. Malova ◽  
V. I. Sisoeva
Keyword(s):  
Price Volatility ◽  
Future Market ◽  
Oil Market ◽  
The World ◽  
Competitive Relations ◽  
The Face ◽  
The Usa ◽  
Analysis Of Dynamics ◽  
State Of Research ◽  
The Impact

The article provides an analysis of change of the world oil market in the face of new "oil" reality. Factors of formation of new "oil" reality in the global world defined. Scientific background and current state of research of the problem are described. It is shownthat in the Russian and foreign literature the considerable attention is paid to the analysis of dynamics of the quantitative variables characterizing fluctuations and shocks in the oil market. At the same time the search for balance in the new "oil" reality are not considerably investigated yet. The proposed approach allows toreveal the substance of the transformation of the world oil market, to assess the changes in the oil market with the development of rhenium in terms of efficiency and functioning of the mechanism, the prospects of price volatility in the oil market. The main directions of transformation of the oil market are follows. Development of a subject basis of the oil market due to changes of a role of the main market players whose structure includes the USA, Saudi Arabia, Russia now. The impact of regulatory factors complex in the oil market towards equilibrium, which include activity of OPEC, supply of shale oil, future market,activity of the uniform regulator and national regulators. Transformation of the oil market in the direction of perfection of the competitive relations, achievement of optimum market balance as a result of coordination and interaction of interests of participants of the global oil market.

scholarly journals Is this time really different? Flight-to-safety and the COVID-19 crisis

PLoS ONE ◽  
2021 ◽  
Vol 16 (5) ◽  
pp. e0251752
Author(s):  
Celina Löwen ◽  
Bilal Kchouri ◽  
Thorsten Lehnert
Keyword(s):  
Financial Crises ◽  
Price Volatility ◽  
Equity Market ◽  
Gold Price ◽  
Sharp Drop ◽  
Market Participants ◽  
Oil Market ◽  
Causality Tests ◽  
Safety Effect ◽  
The One

During periods of market stress, risk-averse investors reallocate their investments from stocks to gold in a bid to hedge risks. Market participants interpret the induced gold price increase as an indication of safe-haven purchases and a signal of increased uncertainty in the general economic and financial conditions, thereby causing higher gold price volatility. The aim of this paper is to analyze whether this flight to safety effect can be observed during the COVID-19 crisis, which is considered to be a one-of-a-kind crisis and obviously of different origin compared to previous (financial) crises. By examining the interactions between the (option-implied) volatilities of the stock market (VIX) and of the gold (GVZ) and oil (OVX) markets, the main findings indicate that there is a granger causality in general between the equity market and the gold as well as the oil market. During the COVID-19 crisis, a stronger influence of the equity market on the oil market can be observed. Based on symmetric causality tests that are typically employed in the literature, this cannot be observed for the gold market. However, once we control for asymmetric causal interactions, we find that positive shocks in VIX cause positive shocks in GVZ. Hence, the typical flight to safety effect, similar to the one observed during other (financial) crises can also be identified for the COVID-19 crisis. The causality between the equity and oil market is triggered by political factors as well as the economic impact of the crisis which induces a sharp drop in demand for oil.

scholarly journals “Shale Revolution” in the United States as the Main Driver of the World Oil Market Transformation

2019 ◽  
Vol 12 (6) ◽  
pp. 71-93
Author(s):  
S. A. Zolina ◽  
I. A. Kopytin ◽  
O. B. Reznikova
Keyword(s):  
United States ◽  
Crude Oil ◽  
Oil Production ◽  
The United States ◽  
Oil Price ◽  
Oil Market ◽  
Oil Exports ◽  
The World ◽  
Oil Sector ◽  
The U.S

In 2018 the United States surpassed Saudi Arabia and Russia to become the largest world oil producer. The article focuses on the mechanisms through which the American shale revolution increasingly impacts functioning of the world oil market. The authors show that this impact is translated to the world oil market mainly through the trade and price channels. Lifting the ban on crude oil exports in December 2015 allowed the United States to increase rapidly supply of crude oil to the world oil market, the country’s share in the world crude oil exports reached 4,4% in 2018 and continues to rise. The U.S. share in the world petroleum products exports, on which the American oil sector places the main stake, reached 18%. In parallel with increasing oil production the U.S. considerably shrank crude oil import that forced many oil exporters to reorient to other markets. Due to high elasticity of tight oil production to the oil price increases oil from the U.S. has started to constrain the world oil price from above. According to the majority of authoritative forecasts, oil production in the U.S. will continue to increase at least until 2025. Since 2017 the tendency to the increasing expansion of supermajors into American unconventional oil sector has become noticeable, what will contribute to further strengthening of the U.S. position in the world oil market and accelerate its restructuring.  

Mindfully performed organisational routines: reconciling the stability and change duality view

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rihana Shaik ◽  
Ranjeet Nambudiri ◽  
Manoj Kumar Yadav
Keyword(s):  
Process Model ◽  
Organisational Change ◽  
Future Research ◽  
Continuous Change ◽  
Content Type ◽  
Stability And Change ◽  
Organisational Routines ◽  
The Stability ◽  
Do So ◽  
Episodic Change

Purpose The purpose of this paper is to provide a process model on how mindfully performed organisational routines can simultaneously enable organisational stability and organisational change. Design/methodology/approach Via conceptual analysis, the authors develop several propositions and a process model integrating the theory of mindfulness and performative aspects of organisational routines with organisational stability and change. To do so, the authors review the literature on organisational routines, mindfulness, stability, inertia and change. Findings First, the authors demonstrate that, based on levels of mindfulness employed, performative aspects of organisational routines can be categorised as mindless, mindful and collectively mindful (meta-routines). Second, in the process model, the authors position the mindless performance of routines as enabling organisational stability, mediated through inertial pressure and disabling change, mediated through constrained change capacities. Finally, the authors state that engaging routines with mindfulness at an individual (mindful routines) or collective (meta-routines) level reduces inertia and facilitates change. Such simultaneous engagement leads to either sustaining stability when required or implementing continuous organisational change. Research limitations/implications The framework uses continuous, versus episodic, change; future research can consider the model’s workability with episodic change. Future research can also seek to empirically validate the model. The authors hope that this model informs research in organisational change and provides guidance on addressing organisational inertia. Originality/value To the best of the authors’ knowledge, this study is the first to categorise the performative aspects of organisational routine based on the extent of mindfulness employed and propose that mindfulness-based practice of routines stimulates either inertia-induced or inertia-free stability and continuous change.

scholarly journals An Improved Mathematical Model for Accurate Prediction of the Heavy Oil Production Rate during the SAGD Process

Processes ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 235
Author(s):  
Aria Rahimbakhsh ◽  
Morteza Sabeti ◽  
Farshid Torabi
Keyword(s):  
Production Rate ◽  
Penetration Depth ◽  
Oil Recovery ◽  
Current Model ◽  
Oil Production ◽  
Exponential Model ◽  
Analytical Models ◽  
Test Facility ◽  
Drainage Rate ◽  
Heat Penetration

Steam-assisted gravity drainage (SAGD) is one of the most successful thermal enhanced oil recovery (EOR) methods for cold viscose oils. Several analytical and semi-analytical models have been theorized, yet the process needs more studies to be conducted to improve quick production rate predictions. Following the exponential geometry theory developed for finding the oil production rate, an upgraded predictive model is presented in this study. Unlike the exponential model, the current model divides the steam-oil interface into several segments, and then the heat and mass balances are applied to each of the segments. By manipulating the basic equations, the required formulas for estimating the oil drainage rate, location of interface, heat penetration depth of steam ahead of the interface, and the steam required for the operation are obtained theoretically. The output of the proposed theory, afterwards, is validated with experimental data, and then finalized with data from the real SAGD process in phase B of the underground test facility (UTF) project. According to the results, the model with a suitable heat penetration depth correlation can produce fairly accurate outputs, so the idea of using this model in field operations is convincing.

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