Oil Price Fluctuations and Oil Consuming Sectors: An Empirical Analysis of Japan

This study investigates the impact of oil price variation on 14 industries in six markets, including Canada, China, France, India, the United Kingdom, and the United States. Panel weekly data were collected from June 1998 to December 2011. The results indicate that price fluctuations primarily affect the Oil and Gas as well as the Mining industries and have the least influence on the Food and Beverage industry. Furthermore, in three out of six of these countries (Canada, France, and the U.K.), oil price changes negatively affect the Pharmaceutical and Biotechnology industry. One possible reason for the negative relationship between oil price changes and the Pharmaceutical and Biotechnology industries in the above-mentioned countries is that the governments of these countries fund their healthcare systems. Portfolio managers and investors will find the results of this study useful because it enables adjusting portfolios based on knowledge of the industries that are impacted the most or the least by oil price fluctuations.

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Business cycles and oil price fluctuations: some evidence for six OECD countries

Recent Modelling Approaches in Applied Energy Economics ◽

10.1007/978-94-011-3088-2_13 ◽

1990 ◽

pp. 239-260 ◽

Cited By ~ 3

Author(s):

Knut Anton Mork ◽

Hans Terje Mysen ◽

Øystein Olsen

Keyword(s):

Business Cycles ◽

Oecd Countries ◽

Oil Price ◽

Price Fluctuations

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Empirical Analysis of the Impact of International Crude Oil Price Fluctuation on China's Stock Market

DEStech Transactions on Engineering and Technology Research ◽

10.12783/dtetr/mcaee2020/35092 ◽

2020 ◽

Author(s):

Yicheng Chen

Keyword(s):

Stock Market ◽

Crude Oil ◽

Empirical Analysis ◽

Oil Price ◽

Crude Oil Price ◽

Price Fluctuation ◽

The Impact ◽

Oil Price Fluctuation

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The Impact of International Oil Prices on the Stock Price Fluctuations of China’s Renewable Energy Enterprises

Energies ◽

10.3390/en12244630 ◽

2019 ◽

Vol 12 (24) ◽

pp. 4630 ◽

Cited By ~ 5

Author(s):

Cody Yu-Ling Hsiao ◽

Weishun Lin ◽

Xinyang Wei ◽

Gaoyun Yan ◽

Siqi Li ◽

...

Keyword(s):

Renewable Energy ◽

Stock Prices ◽

Stock Price ◽

Capital Investment ◽

Spillover Effect ◽

Oil Prices ◽

Listed Companies ◽

Oil Price ◽

Price Fluctuations ◽

The Impact

In order to address a series of issues, including energy security, global warming, and environmental protection, China has ranked first in global renewable investment for the seventh consecutive year. However, developing a renewable energy industry requires a significant capital investment. Also, the international oil price fluctuations have an important impact on the stock prices of renewable energy firms. Thus, in order to provide implications for market investment as well as policy recommendations, this paper studied the spillover effect of international oil prices on the stock prices of China’s renewable energy listed companies. We used a Vector Autoregressive (VAR) model with innovations using a Factor-GARCH (Generalized Autoregressive Conditional Heteroskedasticity) process to evaluate the impact of market co-movements and time-varying volatility and correlation between the international oil price and China’s renewable energy market. The results show that the international oil price has a significant price spillover effect on the stock prices of China’s renewable energy listed companies. Moreover, the fluctuations of international oil prices have an influence on the stock price variations of Chinese renewable energy listed companies.

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The Nexus between Stock Returns of Oil Companies and Oil Price Fluctuations after Heavy Oil Upgrading: Toward Theoretical Progress

Economies ◽

10.3390/economies7030071 ◽

2019 ◽

Vol 7 (3) ◽

pp. 71 ◽

Cited By ~ 1

Author(s):

Sedighi ◽

Mohammadi ◽

Fard ◽

Sedighi

Keyword(s):

Stock Market ◽

Crude Oil ◽

Stock Returns ◽

Petroleum Industry ◽

Oil Industry ◽

Oil Price ◽

Investment Policies ◽

Price Fluctuations ◽

Oil Companies ◽

Petroleum Companies

This study attempts to discover the nexus between crude oil price fluctuation after heavy oil upgrading and stock returns of petroleum companies in the U.S. Stock Exchange for the years 2008 to 2018. One of the methods of upgrading heavy crude oil is to extract asphaltene from crude oil. Considering the Asphaltene Removal (AR) as a factor in the nexus between oil price and the stock market is an innovation in the literature of energy finance. Asphaltenes cause many problems in the petroleum industry, which increases the cost of oil production and reduces the financial efficiency of oil companies. The AR is certainly one of the significant matters of the oil industry and can affect the price of oil. Therefore, changes in the price of oil can influence the price of oil company stocks. Hence, changes in stock prices will certainly affect the stock returns of oil companies. In an effort to solve this puzzle, the four financial models were employed to explore the nexus between oil price fluctuations and stock returns. The analysis of the results demonstrated that the oil price fluctuations caused by the removal of asphaltenes influence the stock returns of petroleum companies. Eventually, the theoretical hypothesis was confirmed by considering the USA as a case study. The outcomes of this investigation are a theoretical progression in areas related to the petroleum industry and the stock market that could lead to the adoption of new investment policies in the petroleum industry including investing in new procedures to manage and decrease the costs and time of the AR process, which would result in the advancement of petroleum companies. In fact, we have introduced a modern investment strategy in the oil industry aimed at reducing oil production costs, improving financial statements and increasing the stock returns of petroleum companies. Eventually, we will present new investment policies in the oil industry that can lead to economic growth and development of financial markets especially stock market, derivatives market, futures exchange, commodities exchange, as well as bond market.

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