this paper presents an oil price cartel model. the aggregate reaction functions for non-cartel producers and for substitute suppliers are included. the former group acts as a price-taker, while the latter expects oil prices in production of its non-oil energy resources. this expectation about prices affects a cartel’s oil demand and, thus, gives intertemporal price elasticities it turns out tha...

In this paper, Black Scholes’s pricing model was developed to study American option on future contracts of Brent oil. The practical tests of the model show that market priced option contracts as future contracts less than what model did, which mostly represent option contracts with price rather than without price. Moreover, it suggests call option rather than put option. Using t hypothesis test...

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...

We propose and investigate a new channel through which the resource curse a stylized fact that countries rich in natural resources grow slower operates. Predatory governments are more likely to expropriate corporate profits in natural resource industries when the price of resources is higher. Corporations whose profits are more dependent on the price of resources can mitigate the risk of exprop...

T his study examines how oil price shocks interact with the stock market index within a nonlinear autoregressive distributed lag model in Iran. Based on quarterly data for the period from 1991 to 2017, the findings revealed statistically significant evidence of short-run and long-run asymmetric behavior of stock market index in response to the positive a...

as a result of higher crude oil prices, in one hand, it is expected that alternative energy resources consumption is increased and consumers change their behavior to decline energy intensity too. on the other hand, more alternative energy consumption can leads to a decline of crude oil aggregate demand. therefore, existence of mutual causality between crude oil price and alternative energy cons...

A number of reasons have motivated our choice of oil, along with its past and expected future price evolution, as the subject in focus for the present book. A fi rst reason is the importance of oil in the world economy. In the early 2010s, the annual production value of this commodity, when measured at international prices, could be assessed at between $3500 and $4000 billion. World oil exports...