From 1997 through 2003, the UN Oil for Food Program allowed Iraq to export oil for humanitarian supplies. We hypothesize that Iraq deliberately set the price of its oil below market prices to solicit bribes from oil buyers. By comparing the price gap between Iraqi oil and its close substitutes during the Program to the gap prior to the Program, we find evidence of significant underpricing. Our ...

The recent coronavirus pandemic (COVID-19) has negatively impacted the whole economy, especially oil industry, in at least two ways. First, it created a demand shock as COVID-19 reduced global for crude oil, increased uncertainty, and triggered serious economic recession most developed emerging countries. Second, led to supply resulted an trade war between major oil-producing nations (Saudi Ara...

This paper aims at providing an in-depth analysis of forecasting ability different GARCH (Generalized Autoregressive Conditional Heteroskedasticity) models and finding the best model for VaR estimation crude oil. Analysis performance is done using Kupiecs POF test, Christoffersens test Backtesting Loss Function. Crude oil one most important fuel sources has contributed to over a third world’s e...

This paper investigated the hedging effectiveness of crude palm oil futures market in Malaysia from January 2009 to June 2011 which traded under Bursa Malaysia Derivatives Berhad. Ordinary Least Squared (OLS) method was used to compute Minimum-Variance hedging ratio (MVHR), R-squared and hedging effectiveness by using daily data from settlement price of crude palm oil futures contracts and spot...