scholarly journals THE IMPACT OF OIL PRICE UNCERTAINTY ON STOCK RETURNS IN GULF COUNTRIES

2019 ◽  
Vol 9 (6) ◽  
pp. 447-452
Author(s):  
Shabbir Ahmad
Keyword(s):  
Stock Returns ◽  
Oil Price ◽  
Price Uncertainty ◽  
Gulf Countries ◽  
The Impact

Oil price uncertainty and equity returns

2016 ◽  
Vol 8 (1) ◽  
pp. 64-79 ◽  
Author(s):  
Aktham Maghyereh ◽  
Basel Awartani
Keyword(s):  
Stock Returns ◽  
Oil Production ◽  
Equity Returns ◽  
Oil Price ◽  
Policy Implications ◽  
Price Uncertainty ◽  
Mena Region ◽  
Stock Market Returns ◽  
Content Type ◽  
The Impact

Purpose This paper aims to examine the impact of oil price uncertainty on the stock market returns of ten oil importing and exporting countries in the Middle East and North Africa (MENA) region. The sample contains both oil importing and oil exporting countries that depend heavily on oil production and exports. Design/methodology/approach This paper intuitively applies the generalized autoregressive conditional heteroskedasticity (GARCH)-in-mean vector autoregression (VAR) model using weekly data over the period January 2001-February 2014. Findings The findings indicate that oil uncertainty matters in the determination of real stock returns. There is a negative and significant relationship between oil price uncertainty and real stock returns in all countries in the sample. The influence of oil price risk is more serious in those economies that depend heavily on oil revenues to grow. Practical implications The findings have important implications. For instance, managers should be aware of the linkages between oil price uncertainty and equity returns when they use oil to hedge and diversify equities, particularly in economies where oil is important for economic growth. The policymakers in oil importing countries should encourage companies to improve efficiency in the usage of energy and to resort to alternative sources to avoid fluctuations in earnings and equity prices. In the countries that heavily depend on oil efforts should focus on diversifying the domestic economy away from oil to protect against oil price fluctuations. Originality/value To the best of our knowledge, this is the first attempt to study the influence of oil price uncertainty in the MENA region. The sample contains both oil importing and oil exporting countries that depend heavily on oil production and exports. The empirical findings of the paper have valuable policy implications for investors, market participants and policymakers.

The Impact of Oil Price Fluctuations on Industry Stock Returns: Evidence from International Markets

2018 ◽  
Vol 5 (1) ◽  
pp. 1-12
Author(s):  
Elias Randjbaran ◽  
Reza Tahmoorespour ◽  
Marjan Rezvani ◽  
Meysam Safari
Keyword(s):  
Stock Returns ◽  
Oil And Gas ◽  
Negative Relationship ◽  
The United States ◽  
Oil Price ◽  
Price Variation ◽  
Price Changes ◽  
Price Fluctuations ◽  
Food And Beverage ◽  
The Impact

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.

scholarly journals The impact of oil price uncertainty on GCC stock markets

2019 ◽  
Vol 64 ◽  
pp. 101526 ◽  
Author(s):  
Abdullah Alqahtani ◽  
Tony Klein ◽  
Ali Khalid
Keyword(s):  
Stock Markets ◽  
Oil Price ◽  
Price Uncertainty ◽  
The Impact

scholarly journals Oil Price Uncertainty and Sectoral Stock Returns in China: A Time-Varying Approach

2014 ◽  
Author(s):  
Guglielmo Maria Caporale ◽  
Faek Menla Ali ◽  
Nicola Spagnolo
Keyword(s):  
Stock Returns ◽  
Oil Price ◽  
Time Varying ◽  
Price Uncertainty

scholarly journals Impact of Oil Price Tumble in 2020 and US Retrenchment on the Stability of the Gulf Region

2020 ◽  
Vol 2 (2) ◽  
pp. 221-239
Author(s):  
Somen Banerjee
Keyword(s):  
Oil Price ◽  
Regional Security ◽  
Gulf Region ◽  
Long Term Stability ◽  
Environmental Disasters ◽  
Gulf Countries ◽  
Western Lake ◽  
Security Challenges ◽  
The Stability ◽  
The Impact

The Indo-Pacific blends a multitude of regions and melds a panoply of security architectures. Some regions are peaceful, with occasional spurts in environmental disasters and non-traditional security challenges, while others are typified by instability and security-dilemma. The Gulf region is a unique arena of the Indo-Pacific, that has stirred a virulent concoction of the oil economy, regional rivalry and US hegemony. Over a century ago, oil discovery has not just made the region wealthy but has also transformed it into a veritable Western Lake. But lately, two significant developments have begun to unravel this homeostatic condition—a tumble in oil prices and US retrenchment from the region. This is likely to have a profound influence on the regional security order. This article examines the role of oil in defining the security architecture of the region. It establishes the effect of demand-supply imbalance and the oil-price-futures on the economy of Gulf countries. Finally, it evaluates the impact of US retrenchment, and the 2020 oil price tumble, on the long-term stability of the region.

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