Ayman Omar

87121

West Texas Intermediate and Brent Spread during Organization of the Petroleum Exporting Countries Supply Disruptions

West Texas Intermediate and Brent Spread during Organization of the Petroleum Exporting Countries Supply Disruptions

This paper investigates the price spread between West Texas Intermediate and Brent during periods of supply disruptions. Using a sample of 50 events of Organization of the Petroleum Exporting Countries (OPEC) - related unplanned upstream production outages, this paper documents a statistically significant tightening in the price differential. The finding is robust even after accounting for 22 OPEC - related political conflicts, 104 extreme weather conditions in the Atlantic basin, and the period of infrastructural bottlenecks in and around the Cushing, Oklahoma. The result is further confirmed when examining the spread between Light Louisiana sweet and Brent. These findings suggest the need to hedge against such risks and give rise to speculative trading which can be facilitated using the vibrant paper markets.

Keywords:

Crude Oil, Benchmarks, Organization of the Petroleum Exporting Countries Supply Disruptions,

International Journal of Energy Economics and Policy-Cover

Başlangıç: 2011
Yayıncı: İlhan ÖZTÜRK

Arşiv

Sayıdaki Diğer Makaleler

Employment Booms and Busts Stemming from Nonrenewable Resource Extraction

Chris JEFFORDS, Alexi THOMPSON, David YERGER

Foreign Direct Investment, Financial Development, InternationalTrade and Energy Consumption: Panel Data Evidence fromSelected ASEAN Countries

İrwan Shah Zainal ABİDİN, Muhammad HASEEB, Muhammad AZAM, Rabiul ISLAM

Energy Efficiency in Rent Seeking Economies:Is Credit Capable of Breaking the Energy Curse?

Renewable Energy Certificate Trading through Power Exchanges in India

Girish G P, Sashikala P, Bharath SUPRA, Anitha ACHARYA

Empirical Analysis of Agricultural Commodity Prices, Crude Oil Prices and US Dollar Exchange Rates Using Panel Data Econometric Methods

Anthony REZİTİS

Volatility Transmission in Oil Futures Markets and Carbon Emissions Futures

Tanattrin Bunnag

Causality Analysis between Electricity Consumption, Real GDP, Foreign Direct Investment, Human Development and Remittances in Colombia, Ecuador and Mexico

Daniel Alejandro Sanchez-Loor, Manuel A. Zambrano-Monserrate

An Econometric Investigation of Forecasting Premium Fuel

Samuel Asuamah Yeboah, Joseph Ohene-Manu

Texas Interconnection Grid: Economic Optimal Capacity Utilization Rate Evidence

Eric L. Prentis

Nuclear Energy Consumption and Growth Nexus in G-6: Evidence from Bootstrap Rolling Window

Mehmet Akif DESTEK