scholarly journals The value of OPEC’s spare capacity to the oil market and global economy

2021 ◽  
Author(s):  
Hossa Almutairi ◽  
Axel Pierru ◽  
James L. Smith
Keyword(s):  
Global Economy ◽  
Spare Capacity ◽  
Oil Market

scholarly journals Oil, Hard Power and U.S. Hegemony

2017 ◽  
Vol 11 (2) ◽  
pp. 35-38 ◽  
Author(s):  
Joshua Nelson
Keyword(s):  
United States ◽  
Global Economy ◽  
Supply And Demand ◽  
Opec Country ◽  
The United States ◽  
Gasoline Price ◽  
Hard Power ◽  
Oil Market ◽  
Economic Control ◽  
The Many

In late 2014 and early 2015, the United States dramatically increased its presence in the oil market. This tremendous increase in production, which placed the United States ahead of every OPEC country besides Saudi Arabia, caused a global change in supply and demand that dropped the price of crude oil to $58 per barrel. This translated to an average gasoline price of $2.55 per gallon nationally on Dec. 15, 2014. The price drop reverberated throughout the global economy, affecting countries from Malaysia to Norway. In Venezuela, for example, it is estimated that a one dollar drop in the price of oil will cost the country approximately $770 million in annual revenue. The United States’ decision to act influenced the entire world, and this is no surprise – economic control is just one of the many facets of hard power and hegemony.

scholarly journals BEHAVIOR OF THE GLOBAL OIL MARKET (1995-2008) AS DESCRIBED BY A SYSTEM DYNAMICS MODEL

2011 ◽  
Vol 29 (56) ◽  
Author(s):  
María de la Fe López-Domínguez ◽  
Sary Levy-Carciente ◽  
José Contreras ◽  
Pedro César Paiva-Mata
Keyword(s):  
Global Economy ◽  
Sensitivity Study ◽  
Structural Factors ◽  
System Dynamics Model ◽  
Dynamics Model ◽  
Medium Term ◽  
Oil Market ◽  
Satisfactory Performance ◽  
Production And Consumption ◽  
Systemic Model

Energy largely determines the characteristics of the global economy, hence the importance of fully understanding the behavior of the oil market in its current geo-economic and political environment. Starting from the basic relations of the global oil market and their interactions with macroeconomic variables, a nonlinear dynamic, structural and systemic model for this market is developed, which simulates the price, production and consumption of oil, and the accumulation of inventories. Model tests show satisfactory performance in the simulation of the known past in a medium-term horizon, 1995-2008. A sensitivity study performed for the same period yield some interesting conclusions about the behavior of the global oil market, such as the irrelevance of the structural factors in the soaring rise in oil prices in 2008.

scholarly journals Measuring the impact of COVID-19 surveillance variables over the international oil market

2022 ◽  
Vol 9 (1) ◽  
pp. 27-33
Author(s):  
Alshdadi et al. ◽  
Keyword(s):  
Saudi Arabia ◽  
Crude Oil ◽  
Global Economy ◽  
Oil Prices ◽  
Oil Reserves ◽  
Oil Market ◽  
Crude Oil Prices ◽  
Oil Markets ◽  
Long Term Impact ◽  
The Impact

Coronavirus (COVID-19) has turned to be an alarm for the whole world both in terms of health and economics. It is striking the global economy and increasing the unpredictability of the financial market in several ways. Significantly, the pandemic spread stimulated the social distancing which led to the lockdown of the countries’ businesses, financial markets, and daily life events. International oil markets have accommodated the crude oil prices during the early COVID-19 period. However, after the first 50 days, Saudi Arabia has surged the market with oil, which caused a certain decrease in crude oil prices, internationally. Saudi Arabia is one of the biggest oil reserves in the world. International trade is based on oil reservoirs which in turn, have been significantly dislodged by the pandemic. Therefore, it is crucial to study the impact of COVID-19 on the international oil market. The purpose of this study is to investigate the short-term and long-term impact of COVID-19 on the international oil market. The daily crude oil price data is used to analyze the impact of daily price fluctuation over COVID-19 surveillance variables. The correlation between surveillance variables and international crude oil prices is calculated and analyzed. Consequently, the project will help in stabilizing the expected world economic crises and particularly will provide the implications for the policymakers in the oil market.

Effect of COVID-19 on Biodiesel Industry: A Case Study in Indonesia and Malaysia

2021 ◽  
Vol 18 (2) ◽  
Author(s):  
Ibham Veza ◽  
Vicky Muhammad ◽  
Rama Oktavian ◽  
Djati Wibowo Djamari ◽  
Mohd Farid Muhamad Said
Keyword(s):  
Palm Oil ◽  
Financial Stability ◽  
Global Economy ◽  
Oil Market ◽  
Labour Shortage ◽  
Fuel Industry ◽  
The Impact ◽  
Biodiesel Industry ◽  
Palm Oil Biodiesel

Indonesia and Malaysia are currently holding prominent roles in the global palm oil market. Both countries are the top two palm oil producers in the world and have ambitious targets to increase the palm oil-based biodiesel mandate. In Indonesia, the current programme of blending 20 per cent palm oil into 80 per cent diesel (B20) increases to B30 in 2020. Likewise, Malaysia plans to increase its biodiesel mandate from B10 to B20 in 2020. However, the outbreak of COVID-19 has infected millions and brought the global economy to a near-deadlock. The effect is particularly severe in the fuel industry owing to movement restrictions and the historic drop in oil prices. Evaluating the impact of the COVID-19 on the biodiesel industry is crucial for policymakers but challenging as the pandemic has evolved with intense speed. This article aims to discuss the impact of COVID-19 on the Indonesian and Malaysian biodiesel industry. In addition to that, a number of possible solutions to overcome the challenges were addressed and proposed. Despite severely affected by COVID-19, both Indonesia and Malaysia can use this momentum to improve and strengthen their biodiesel sector. Given its fiscal deficit, Indonesia should postpone its biodiesel blending mandate as the subsidy to support the programme can worsen the country’s financial stability. In Malaysia, where labour shortage is prevalent, modernising plantations with automated equipment, for instance, could potentially remove the dirty and dangerous stereotypes associated with plantation works, thus attracting more locals to work in the palm oil plantation and solving the labour shortage. This paper also briefly addresses the adoption of Industry 4.0 and Circular Economy for the palm oil biodiesel industry.

scholarly journals Transformation of the global oil pricing structure in the conditions of increasing competition of leading players in the oil market

2021 ◽  
Vol 258 ◽  
pp. 06064
Author(s):  
Pavel Katyukha ◽  
Angela Mottaeva
Keyword(s):  
Crude Oil ◽  
Global Economy ◽  
Institutional Changes ◽  
Financial Instrument ◽  
Oil Market ◽  
The World ◽  
Oil Pricing ◽  
Quality Production

The article proposed by the authors examines the competition between the world's leading producer countries in the context of changing the structure of global oil pricing. The global benchmarks for WTI, Brent and Dubai are the price benchmarks for all oil producing countries in the world, and all changes related to quality, production volumes and supply geography cause structural and institutional changes in the oil market. Crude oil plays an important role in the global economy not only as a commodity, but also as a financial instrument for the redistribution of income between the world’s largest financial players.

THE SHOCKS BETWEEN OIL MARKET TO THE BRIC STOCK MARKETS: A GENERALIZED VAR APPROACH

2020 ◽  
Author(s):  
Rui Dias ◽  
◽  
Paula Heliodoro ◽  
Paulo Alexandre ◽  
Cristina Vasco ◽  
...  
Keyword(s):  
Financial Markets ◽  
Global Economy ◽  
Open Space ◽  
Short Term ◽  
Normal Distributions ◽  
Oil Market ◽  
Global Pandemic ◽  
Arbitrage Opportunities ◽  
Market Shocks ◽  
The Impact

The pandemic (Covid-19) has affected the global economy, and the impact on financial markets seems inevitable. In view of these events, this essay aims to analyse the shocks between the stock market indices of Brazil (BOVESPA), China (SSEC) India (SENSEX), Russia (IMOEX) and oil (WTC), in the period from January 2, 2019 to May 29, 2020. In order to carry out this analysis, different approaches were undertaken with a view to gauging whether (i) the global pandemic has accentuated the shocks between the BRIC financial markets and the WTC? The daily yields do not have normal distributions, show negative asymmetries, leptokurtic, and exhibit conditional heteroscedasticity. In general, we find evidence that the WTC causes the markets of Russia and India, China does not cause any market, and Brazil is not caused by any market analysed. On the other hand, short-term market shocks are relevant and create some arbitrage opportunities. However, our study did not analyse anomalous returns in these financial markets. These findings also open space for market regulators to take action to ensure better information between international financial markets.

THE IMPACT OF ENERGY WARS AND GEOPOLITICS ON EXCHANGE RATES AND THE PRICE OF OIL: THE ERA OF THE COVID-19 PANDEMIC

2020 ◽  
pp. 64-71
Author(s):  
M.N. Dudin ◽  
◽  
N.V. Lyasnikov ◽  
A.N. Bryntsev ◽  
◽  
...  
Keyword(s):  
Exchange Rates ◽  
Global Economy ◽  
Supply And Demand ◽  
Oil Prices ◽  
Factors Affecting ◽  
Macroeconomic Conditions ◽  
Oil Market ◽  
The World ◽  
The Cost ◽  
The Impact

Oil will remain the single largest energy source in the world for the foreseeable future, and a balance must be struck between global supply and demand. A serious malfunction of only one large oil producer can lead to a significant change in oil prices and the recession of the entire global economy. The aim of the article is to study the theoretical and empirical aspects of the mutual causality of oil prices and exchange rates, as well as to determine their influence on the development of the world economy. Methodology of the article. To complete this article, a comparative, economic and statistical analysis was used. Results. The article proves that the oil market is more inherent in a tendency towards regionalization rather than globalization. Factors affecting this process include macroeconomic conditions, the balance of supply and demand, the transformation of the regulatory component, changes in the cost structure and the significant influence of geopolitical components. The article justifies the fact that there is a certain strong direct connection between oil prices and exchange rates, but it is influenced by various geopolitical factors (for example, sanctions). Only 4% of the cost of oil is included in the price of gasoline, so when the price of oil falls, the price of gasoline does not decrease. Conclusions. A characteristic feature of the relationship between oil prices and exchange rates is the presence of bilateral mutual causality. Fluctuations in the dynamics of the oil industry are changing the roles of traditional and new suppliers. The oil market environment, which is a key commodity of our time, has a significant impact on world currencies.

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.

Financial alchemists and financial shamans

2018 ◽  
Vol 41 ◽  
Author(s):  
Samuel G. B. Johnson
Keyword(s):  
Global Economy ◽  
Money Management

AbstractProfessional money management appears to require little skill, yet its practitioners command astronomical salaries. Singh's theory of shamanism provides one possible explanation: Financial professionals are the shamans of the global economy. They cultivate the perception of superhuman traits, maintain grueling initiation rituals, and rely on esoteric divination rituals. An anthropological view of markets can usefully supplement economic and psychological approaches.

Flu Pandemic Would Weaken Global Economy

2006 ◽  
Vol 39 (17) ◽  
pp. 5
Author(s):  
Jonathan Gardner
Keyword(s):  
Global Economy
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