Based on monthly observations, I specify an econometric model capturing the driving forces behind the crude oil price series in recent years. A large set of covariates, such as supply and demand variables as well as futures market variables, is used to test the impact on the crude oil price. Current price movements are a result of scarce refining capacity and speculators betting on higher price...

oil seeds and crude vegetable oil are the raw materials used in vegetable oil producing industry. vegetable oil producing plants in iran are dependent on importing the material in a way that more than 90 percent of these materials are to be imported. soybean oil seed is the main oil seed utilized in the oil producing plants which is procured through importation from other countries. in the worl...

Oil price shocks are the major source of economic instability in oil exporting developing countries, including Iran. In this paper a Multi Sector Dynamic Stochastic General Equilibrium model, with emphasis on optimization of oil sector as a producing sector is designed. Furthermore, an optimizing import sector is introduced into the model by considering the price rigidity in imported goods as a...

a r t i c l e i n f o A global computable general equilibrium model is used to analyze the economic impacts of rising oil prices with endogenously determined availability of biofuels to mitigate those impacts. The negative effects on the global economy are comparable to those found in other studies, but the impacts are unevenly distributed across countries/regions or sectors. The agricultural s...

In this paper, using the co-integrated VAR model we attempt to empirically investigate the effects of oil price and monetary shocks on the Russian economy covering the period 1995:Q3-2007:Q4. Our finding is that real GDP and inflation in Russia exhibit a positive response to an oil price increase, but not in the case of interest rates. Also we see that the impact of the oil price shock on the e...

This paper uses a ßexible approach to characterize the nonlinear relation between oil price changes and GDP growth. The paper reports clear evidence of nonlinearity, consistent with earlier claims in the literature— oil price increases are much more important than oil price decreases, and increases have signiÞcantly less predictive content if they simply correct earlier decreases. An alternativ...

Article history: Received 20 June 2014 Received in revised form 25 September 2014 Accepted 26 September 2014 Available online 5 October 2014 This paper investigates the time-varying impact of oil price uncertainty on stock prices in China using weekly data on ten sectoral indices over the period January 1997–February 2014. The estimation of a bivariate VAR-GARCH-in-mean model suggests that oil ...

For decades, humans have been consuming large quantities of oil, coal and natural gas. Consequently, people must now take responsibility for having participated in productive activities that have caused the emissions of greenhouse gas (GHG) which has damaged the environment and caused problems associated with abnormal weather. Previous studies investigated the relationships between energy and c...

Basis = price of hedged asset-price of hedging instrument problem of basis risk: uncertainties of processes describing the evolution of prices of asset and hedging instrument not identical, only highly correlated Example 1: weather derivatives hedged asset: heating oil sales, hedging instrument: HDD derivative HDD derivative: contract paying a premium in case HDD above a critical threshold Exam...

The price of a barrel of crude oil doubled within a few months last year. Although prices have been easing lately, for those who paid more than $3 for a gallon of gas, the memory is not likely to fade quickly. But worries about higher gas prices don’t end at the pump. Oil price shocks—sudden and sharp increases in the price of oil and its derivatives like gasoline—are associated in the popular ...