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External Effects of the War in Ukraine: The Impact on the Price of Oil in the Short-term

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  • Antonio Jose Garzon Gordon

    (University of Seville, Spain.)

  • Luis Angel Hierro Recio

    (University of Seville, Spain.)

Abstract

This paper analyses the short-term impact of the most relevant events of the war in the Ukraine on the price of oil. In order to determine the events to be studied, we propose a methodology based on a study of the news published in two reference newspapers in the markets: the Wall Street Journal and the Financial Times. From this selection, we use an event study model to detect the significance of the events. The main results obtained are: events that affected daily oil prices were scarce and occurred during very specific phases of the conflict; WTI price was more affected than Brent, even though the war took place in Europe; there is no noticeable lagged effect in the events, suggesting that the market assimilated the impact of relevant events very quickly.

Suggested Citation

  • Antonio Jose Garzon Gordon & Luis Angel Hierro Recio, 2019. "External Effects of the War in Ukraine: The Impact on the Price of Oil in the Short-term," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 267-276.
    • Handle: RePEc:eco:journ2:2019-02-31
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    References listed on IDEAS

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    Cited by:

    1. Ahmad Alshwawra & Ahmad Almuhtady, 2020. "Impact of Regional Conflicts on Energy Security in Jordan," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 45-50.

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    More about this item

    Keywords

    oil price; war; Ukraine; event study;
    All these keywords.

    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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