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- These shocks have statistically and economically significant effects. Negative news leads to an immediate increase in oil prices, a gradual fall in oil production, and an increase in inventories.
www.aeaweb.org/articles?id=10.1257/aer.20190964The Macroeconomic Effects of Oil Supply News: Evidence from ...
People also ask
How do oil supply news shocks affect oil prices?
Do changes in oil supply expectations affect the oil price and macroeconomy?
Are oil exporters facing a triple macro-fiscal shock?
How does negative news affect global economic activity?
Jun 4, 2024 · "The same negative macro headlines that have raised likelihood of a cut tomorrow are affecting expected demand for energy products, which is weighing on oil prices," said Kevin Burkett,...
Using a novel identification design, exploiting institutional features of OPEC and high-frequency data, I identify an oil supply news shock. These shocks have statistically and economically significant effects. Negative news leads to an immediate increase in oil prices, a gradual fall in oil production, and an increase in inventories. This has ...
- Diego Raoul Känzig
- 2021
Oil supply news shocks have statistically and economically significant effects. Negative news about future oil supply leads to a large, immediate increase in oil prices, a gradual but significant fall in world oil production, and a significant increase in world oil inventories.
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The Organization of Petroleum Exporting Countries (OPEC) has sought to influence global oil prices by limiting the supply of crude for decades, with varying degrees of success. In recent years, OPEC's power to set prices was undermined by the development of shale supply in the continental U.S., but reinforced by OPEC's alliance with Russia and othe...
Strong economic growth and industrial production tend to boost the demand for oil—as reflected in the increased demand from fast-growing developing nations in recent years. According to the U.S. Energy Information Administration: Other important factors that affect demand for oil include transportation (both commercial and personal), population gro...
More and more, market participants are buying and selling crude oil not in its physical form but rather through futures and options contracts. For example, airlines and oil producers use derivatives like futures and options to hedge against swings in the price of crude, while speculatorsuse the same securities in hopes of profiting from price moves...
Oil has long been the engine of the world's economy, and even today—as the search for alternative energy sources gains ground—it remains an essential commodity. Carbon-based fuels are widely used in transportation, heating and manufacturing. While global growth plays a major role in setting oil prices, supply dynamics influenced by political develo...
Feb 16, 2022 · Oil prices are strongly influenced by the global economic outlook. Changes in supply and demand and geopolitical tensions cause price fluctuations. An orderly energy transition can protect against oil price spikes.
Jan 1, 2024 · By focusing on crude oil prices, returns and volatilities while not oil supply-demand shocks, a branch of the existing works investigated the relation between oil shocks and macroeconomic fundamentals.
Oil exporters are facing a triple macro-fiscal shock: a sharp revenue loss from the collapse in global oil prices, negative economic impact on domestic non-oil activity, and increased spending pressures arising from the policy response to the effects of Covid-19.
