The oil-price declinesince mid-2014 has been a major shock to the global chemical industry. Many producers were underprepared for both the magnitude and speed of the impact on their businesses. The changing nature of oil supply and demand is expected to exacerbate ...
The proposed model allows us to reveal responses in economic indicators in various countries to changes in the equilibrium oil price. Our model covers 47 countries, including the member countries of the Organization of Petroleum Exporting Countries (OPEC), the Commonwealth of Independent States (CIS)...
In the end, the forces of supply and demand determine the price equilibrium, although OPEC+ announcements can temporarily affect the price of oil by altering expectations. A case in point where the expectations of OPEC+ would be altered is when its share of world oil production declines, with ...
Oil Price Shocks and Exchange Rate Management: The Implications of Consumer Durables for the Small Open Economy This paper examines exchange rate management issues when a small open economy is hit by an exogenous oil price shock. In this model consumer durables play ... M Plante - 《Caepr Work...
Naive equilibrium analysis as in Econ 101 won’t teach you a thing; the markets are never in equilbrium and never even approach it. Oil’s an interesting market.— it has exchanges. In most markets, the seller is a price-setter and the buyer is a price-taker — buyers respond quickly...
Third, an unexpected increase in oil-specific demand instigates a negative response in the pre-GFC period (considering the response 4–5 months after the shock), although this changes to a positive effect thereafter. Interestingly, irrespective of the origin of oil price fluctuations, oil price ...
Economy-Wide and Distributional Impacts of an Oil Price Shock on The South African Economy; World Bank Publications: Herndon, VA, USA, 2007; Volume 4354. [Google Scholar] Kang, W.; de Gracia, F.P.; Ratti, R.A. Oil price shocks, policy uncertainty, and stock returns of oil and gas ...
Shifts in geopolitical and regulatory landscape:The interplay of OPEC and its partners in managing energy supplies, alongside the situation in the Middle East, can significantly influence the equilibrium of hydrocarbon supply and demand. Other trends to watch include the level of hydrocarbon exports, ...
Moreover, it is necessary to more precisely identify the effect of the Russia–Ukraine war on each IMF while considering varied driving factors, such as the equilibrium of supply and demand or the price of substitutes. Furthermore, conducting an in-depth assessment of the long-term impact of ...
In addition, the error correction model is derived in order to address the deviations from the long-run equilibrium due to the short-run shock, which may not immediately adjust. This could be due to the adjustment process and lags in perceiving changes in any of the determinants. Therefore, ...