A Density-Method-Based Model for Allocating the Refining Cost of Gasoline and Diesel in China

2012 ◽  
Vol 524-527 ◽  
pp. 1773-1779
Author(s):  
Wei Qi Li ◽  
Lin Wei Ma ◽  
Feng Fu ◽  
Ya Ping Dai
Keyword(s):  
Crude Oil ◽  
Influencing Factor ◽  
Refining Process ◽  
Oil Price ◽  
Oil Refining ◽  
Crude Oil Price ◽  
Density Method ◽  
Refining Cost ◽  
The Cost ◽  
Operation Cost

In this paper, we present a density-method-based model to allocate the refining cost to petroleum products such as gasoline and diesel. By using this model, we also present an empirical study of China, which is based on a virtual crude oil refining process proposed referring to the technical configuration of oil refining industry in China. Three scenarios of the cost of gasoline and diesel are illustrated referring to different settings of the change of the international crude oil prices. The results indicate that the cost of gasoline and diesel change nearly the same amplitude as the change of crude oil price. However, the margin between the cost of gasoline and diesel will slightly increase with the rise of crude oil price. Besides, we also present a sensitivity analysis of the operation cost of each unit in the refining process. The results reveal that the operation cost of catalytic reforming is the most important influencing factor of the cost of gasoline, while the operation cost of hydrogen cracking influences the cost of diesel mostly.

scholarly journals Dynamic Relationship Between Global Oil Price and the Eswatini’s Exchange Rate: A Toda-Yamamoto Approach

2019 ◽  
pp. 82-86
Author(s):  
Sotja G. Dlamini
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Crude Oil ◽  
Global Market ◽  
Exchange Rate Policy ◽  
Nominal Exchange Rate ◽  
Oil Price ◽  
Oil Refining ◽  
Crude Oil Price ◽  
United States Dollar

Globalization and liberalization puts the emphasis on exports as a technique in which developing countries like the Kingdom of Eswatini should adopt to expand their markets beyond their domestic market. For the developing countries to be international competitive in the global markets they need to minimize their production cost particularly on the products that are being exported. The production of most of the exported commodities needs lot energy from oil; hence there has been tremendous increase of oil and its by-product worldwide. The current oil demand for most countries in the world is not met because of insufficient reserves for crude oil in most countries. The Kingdom of Eswatini does not have an oil reserves or oil-refining facilities hence they depends on imports from the neighbouring states in order to meet the consumption requirement. The oil price shocks in the global market normally have adversely effects on various macroeconomic variables such as exchange rate since the oil is traded in US dollars. Oil and exchange rate are considered to be essential factors for domestic economies for developing countries like the Kingdom of Eswatini. The purpose of the study is to investigate the causal relationship between Lilangeni-dollar exchange rate and crude oil price by using the Toda-Yamamota approach. The study used daily time series from January 01st, 2005 to April 30th, 2018 of nominal exchange rate of Lilangeni (Eswatini currency [SZL]) vis-à-vis United States dollar (USD) data as well as the global price of Brent crude oil data that was used as a proxy for the Global crude oil price. The results from the Toda-Yamamoto Granger causality test revealed that there is a unidirectional causality from the global oil price to the Eswatini’s nominal exchange rate (SZL/USD). Hence the study concluded that the global crude oil price influence the Eswatini’s nominal exchange rate. Therefore the study recommends that in the formulating of Eswatini’s exchange rate policy emphases should be on the global oil prices in order not to misalign the Eswatini’s currency.

Impact of crude oil price on the socio-political environment of global countries

2019 ◽  
Vol 118 (3) ◽  
pp. 110-122
Author(s):  
Johnson Clement Madathil ◽  
Velmurugan P. S
Keyword(s):  
Crude Oil ◽  
Descriptive Analysis ◽  
Oil Price ◽  
Policy Framework ◽  
Political Environment ◽  
Policy Reforms ◽  
Crude Oil Price ◽  
Short Term ◽  
Political Impact ◽  
New Energy

Crude oil is known to have an impact on people’s life of both producers and consumers of crude oil countries. A producer country’s socio-political impact will be different from a consumer country’s socio-political impact. This paper aims to show that crude oil price has a socio-political impact on global countries through descriptive analysis. The study found that there were similarities in the movement of crude oil price and change in GDP of both India and United States and further Russia and Venezuela have had crude oil impact on their respective GDP’s, which has made them take policy reforms. The paper identifies changes in the policy framework due to influence of crude oil price and eventual changes in existing socio-political environment. Taking oil producing countries such as Russia and Venezuela as examples, this paper suggests that policy reforms are the key to having a stable socio-political environment. Russia shows us that having a flexible monetary policy can keep the budget dependence on crude oil reduced in the short term. On the other hand, for oil consuming countries, having a stable supply and moving to new energy sources is the key to tackle the influence of crude oil price on the socio-political environment of global countries.

Crude Oil Price Dynamics With Crash Risk Under Fundamental Shocks

2020 ◽  
Author(s):  
Cho-Hoi Hui ◽  
Chi-Fai Lo ◽  
Chi-Hin Cheung ◽  
Andrew Wong
Keyword(s):  
Crude Oil ◽  
Oil Price ◽  
Crash Risk ◽  
Price Dynamics ◽  
Crude Oil Price

scholarly journals H-Infnitiy for world crude oil price estimation

2020 ◽  
Vol 1563 ◽  
pp. 012016
Author(s):  
M Y Anshori ◽  
T Herlambang ◽  
D F Karya ◽  
D Rahmalia ◽  
P A Inawati
Keyword(s):  
Crude Oil ◽  
Oil Price ◽  
Crude Oil Price ◽  
Price Estimation
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