In November 2014, OPEC announced a new strategy geared towards improving its market share. Oil-market analysts interpreted this as an attempt to squeeze higher-cost producers, notably US shale oil, out of the market. Over the next year, crude oil prices crashed, with large repercussions for the global economy. We present a simple equilibrium model that explains the fundamental market factors th...

This paper analyzes the macroeconomic impact of structural oil shocks in four of the top oil-consuming Asian economies, using a VAR model. We identify three different structural oil shocks via sign restrictions: an oil supply shock, an oil demand shock driven by global economic activity and an oil-specific demand shock. The main results suggest that economic activity and prices respond very dif...

Energy has always been of particular importance to humanity. Oil and gas have been some of the energies that greatly influenced the national security of countries, which produce and consume energy. With the transformation of geostrategic discourse into geo-economic discourse in recent decades and the key role of economics in global relations, oil as the basis of modern industry has enjoyed a hi...