scholarly journals World Oil: Market or Mayhem?

2009 ◽  
Vol 23 (3) ◽  
pp. 145-164 ◽  
Author(s):  
James L Smith
Keyword(s):  
Economic Theory ◽  
Oil Prices ◽  
Peak Oil ◽  
Oil Market ◽  
Long Run ◽  
The World

Many observers regard the world oil market as a puzzle. Why are oil prices so volatile? Why did prices spike in the summer of 2008, and what role did speculators play? How important is OPEC? Where are oil prices headed in the long run? Is “peak oil” a genuine concern? Any attempt to answer these questions must be informed and disciplined by economics. We examine the evidence on each of these issues and provide an interpretation of developments in the world oil market from the perspective of economic theory.

scholarly journals The fluctuations in oil prices in the OPEC countries and the impact on the world oil market

2017 ◽  
pp. 4-8
Author(s):  
Zarina Stepanovna Akhlatyan ◽  
◽  
Natalia Vladimirovna Buryanova ◽  
Keyword(s):  
Oil Prices ◽  
Oil Market ◽  
The World ◽  
The Impact

Markets need morality: perspectives from Islam, Christianity, and China

2019 ◽  
Vol 36 (1) ◽  
pp. 73-86
Author(s):  
Jonathan Edward Leightner
Keyword(s):  
Economic Theory ◽  
Design Methodology ◽  
Social Implications ◽  
Religious Institutions ◽  
Ethical Theories ◽  
Content Type ◽  
Long Run ◽  
The World ◽  
Islam And Christianity ◽  
Practical Implications

Purpose This paper aims to argue that markets need a foundation of morality to promote the long-run success of an economy. Design/methodology/approach Three types of ethical theories are discussed and compared with what the sacred scriptures of Islam and Christianity say and with what economic theory says. Examples from China are provided. Findings Markets need morality. Research limitations/implications There are more religions in the world than just Islam and Christianity; however, space limitations force me to only consider those two religions. Furthermore, there are more countries in the world than just China. However, space limitations force me to only pull examples from China. Practical implications Economists should recognize that markets need morality, and they should start teaching that to their students. Social implications If markets are built on a foundation of ethics, then society prospers. In the absence of that foundation, societies falter. When a government, business and religious institutions see each other as complementary forces, then ethics can evolve. Originality/value The author knows of no other studies that explain the three types of ethical theories, compares those theories to what the sacred scriptures of Islam and Christianity say and to what economic theory says, and then uses examples from China to illustrate the need for morality.

EVOLUTION OF OPEC’S POSITIONS IN THE WORLD OIL MARKET

2021 ◽  
pp. 86-98
Author(s):  
Aleksei N. Bokov ◽  
Keyword(s):  
Oil Prices ◽  
Oil Market ◽  
The World ◽  
Key Players ◽  
Oil Sector ◽  
Production Capacities

The author in the article examines the process of formation of OPEC as a regulator of the world oil market. He reveals the background causes for its creation and shows the key stages of the Organization’s development. The author considers the issues and prospects for the further evolution of the Organization, as well as the oil sector influencing the development of the participating countries. The article also defines mechanisms that allow OPEC to have an effect on the oil market: they are “free production capacities” of the Organization’s countries, and the production quotas system. It analyzes periods of the growth and decline in the oil prices, production volumes, as well as the events preceding them. The article states that for more than half a century of history, OPEC has become one of the key players in the world oil market.

Chapter II. The World Economy

1991 ◽  
Vol 135 ◽  
pp. 27-49 ◽  
Author(s):  
Ray Barrell ◽  
Andrew Gurney ◽  
Jan Willem In't Veld
Keyword(s):  
World Economy ◽  
Oil Prices ◽  
Oil Price ◽  
Bank Failures ◽  
Capacity Utilisation ◽  
Oil Market ◽  
Rate Of Growth ◽  
The Us ◽  
The World ◽  
The Uk

The start of hostilities in the Gulf in January appears to have removed some of the uncertainties surrounding the oil market, and oil prices have dropped to around 20 dollars per barrel. This development should help sustain growth and reduce inflation over the next two years. Box A sets out some calculations of the effects of the change in our oil price assumptions on our forecast. The appreciation of the D-Mark bloc and the emergence of a recession in the US driven by a wave of bank failures has persuaded us to be less optimistic then we were in our last forecast. Table 1 summarises the outlook. We are forecasting a slowdown in the rate of growth in the major economies in 1991, with some recovery in 1992 and thereafter. The slowdown has already taken place in the US, the UK and Canada, whereas in 1990 Japanese and German growth was at historically high levels. Chart 1 plots levels of capacity utilisation in the major economies. Only in the US has output clearly fallen below capacity, but record levels of utilisation in Japan, Germany and France inevitably imply some slowdown in growth from recent levels.

scholarly journals Modeling Nonlinear Granger Causality and Co-Integration Between Gold Price Returns and Crude Oil Price Returns

2018 ◽  
Vol 14 (2) ◽  
pp. 105-116
Author(s):  
Nawaz Ahmad ◽  
Keyword(s):  
Crude Oil ◽  
Granger Causality ◽  
Oil Prices ◽  
Oil Market ◽  
Crude Oil Prices ◽  
Long Run ◽  
Gold Market ◽  
Oil Markets ◽  
Causality Tests ◽  
Multiplicative Effects

To model the nonlinear analysis of commodities, Gold market and crude oil market have importance to test their lead and lag price mechanism between the two. For this purpose, the log transformation has been done to calculate easier multiplicative effects. However, to record the dynamic effects of long run cointegreation model applied and tested to find the significance of the problem statement issues. Furthermore, granger causality approach also uses to examine the fundamental linkages between Gold Prices and Crude Oil prices. Meanwhile, the study of Gold markets and oil markets gained popularity among development economists during in last some decades. And try to find out stochastic relationship between the two nonlinear markets. The academic practitioners paved their efforts to run casual time series models in order to find out the robust results which help the economists and financial experts to drive the industry indicator in positive way. This study confirmed that there is cointegration between the two important indicators of large market commodities i.e Gold and crude oil and also casual interactions. Pairwise Granger Causality Tests concluded that Gold Prices return has Granger Cause on Oil Prices return in the long run and if the βeta change in the prices of gold may affect on the prices of crude oil in the long run.

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 Macroeconomic analysis and forecasting of the impact of energy wars and geopolitics on currency rates and oil prices

2020 ◽  
pp. 7-20
Author(s):  
Alexander N. Bryntsev ◽  
Keyword(s):  
Exchange Rates ◽  
World Economy ◽  
Supply And Demand ◽  
Oil Prices ◽  
Close Correlation ◽  
Oil Market ◽  
Macroeconomic Analysis ◽  
Oil Markets ◽  
The World ◽  
The Impact

Subject/topic. In modern conditions, it is advisable to consider geopolitics through the prism of hybrid wars, when the theaters of war have moved from the ocean and land to the world financial and commodity markets. There is a close correlation be-tween changes in exchange rates and the price of oil on the results of energy wars. The aim of the article is to study the theoretical and empirical aspects of the impact of energy wars and geopolitics on the formation of oil prices and the dynamics of currency rates in modern conditions, as well as determining their vector of influence on the development of the world economy as a whole. Methodology of the article. To complete this article, a comparative and economic-statistical analysis was used. Results. The article shows that in the context of globalization of the world economy, there is a deep correlation between changes in currency rates and the price of oil and the consequences of energy wars, on the one hand, and on the other, currency rates and oil prices are the tools for geopolitics in achieving their goals. In addition, there is a fairly strong direct link between oil prices and exchange rates. Factors affecting the formation of the currency exchange and oil markets are sometimes artificial in nature by influencing appropriate macroeconomic conditions, for example, changing the balance of supply and demand. Findings. A macroeconomic analysis of the nature of the relationship between the dynamics of oil prices and currency fluctuations reveals the geopolitical interests of the main players in the oil market, indicating its redistribution. The stage of ousting Russia from the Chinese oil market with dumping prices began, not only with supplies from Saudi Arabia, but also with the active participation of the former partners of Iran and Venezuela, which themselves were under sanctions. The budget of these countries directly depends on oil imports. It is the force majeure circumstances that force them to abandon further partnership with Russia and become independent players in the Chinese hydrocarbon market.

scholarly journals The finiteness of crude oil: Are we running out?

SURG Journal ◽  
2019 ◽  
Vol 11 ◽  
Author(s):  
Conor Smith
Keyword(s):  
Energy Source ◽  
Natural Resources ◽  
Crude Oil ◽  
Technological Innovation ◽  
Oil Prices ◽  
Anthropogenic Activity ◽  
Peak Oil ◽  
The World ◽  
Finite Resource ◽  
Controversial Nature

Oil is a controversial natural resource. One aspect of its controversial nature takes the form of periodic expressions of fear at the prospect of the depletion of this energy source, often referred to as Peak Oil Theory. Julian Simon was among the first to challenge the increasing scarcity scenario and argued that global oil stocks are increasing as a result of anthropogenic activity. He presented evidence that, since the 1860s, oil prices had been generally decreasing. Bjørn Lomborg set out to challenge Simon’s finding, and ultimately ended up siding with Simon, concluding that crude oil stocks are increasing and that there is no sign that the world will soon “run out” of this finite resource. This paper updates the earlier work by Simon and Lomborg to see if the trends that they documented have changed since their research was published. Updated data are presented on oil prices, stocks, and extraction rates. These updated data suggest that most of Simon and Lomborg’s findings still hold. The analysis provided in this report concludes that the depletion of oil stocks is not of utmost concern, and that continuous technological innovation allows for greater output per unit of crude oil consumed, thus essentially increasing the availability of crude oil, and giving new meaning to the term “finite” in the realm of natural resources. Of course, future alternatives are important to discuss, as issues associated with oil dependency remain relevant. But fears of running out of this resource seem to be unjustified.

scholarly journals Impact of OPEC activities on the global oil market

2020 ◽  
pp. 38-44
Author(s):  
Aidana Orynbekova
Keyword(s):  
Economic Growth ◽  
World Economy ◽  
Oil Prices ◽  
World Order ◽  
Interstate Cooperation ◽  
Oil Market ◽  
Global Pandemic ◽  
World Energy ◽  
The World ◽  
Opec Member

This article is devoted to the main problems of interstate cooperation in the oil industry and the high role of the influence of the Organization of Petroleum Exporting Countries (OPEC) on the world economy. Thus, the process of transformation of OPEC from an inactive and inconspicuous organization in the world oil market, as well as the struggle of its members for universal world domination in the oil market. The increased economic growth of some countries in the past years led to the fact that the demand for oil began to exceed the supply, but the relevance of today dictates its own rules against the backdrop of the growing coronavirus pandemic. It is at the turn of the day that the negative factors and consequences of the global pandemic and its impact on oil prices are most clearly visible. The oil giants of the world economy are the OPEC member countries, which, as the current picture shows, fully control their oil resources and oil prices. Moreover, the current picture shows that oil has become the subject of major global speculation, showing that not only economic growth, the integrity of the world economy and the world order are under threat, but also the entire world energy balance.

The world oil market 1973-1983, and the future of oil prices

OPEC Review ◽  
1985 ◽  
Vol 9 (4) ◽  
pp. 389-416 ◽  
Author(s):  
Trevor M.A. Farrell
Keyword(s):  
Oil Prices ◽  
Oil Market ◽  
The World ◽  
The Future
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