IDEAS home Printed from https://ideas.repec.org/a/ris/qjatoe/0145.html
   My bibliography  Save this article

Role of Structural Shocks on Fluctuations of Crude Oil Prices

Author

Listed:
  • Azimi, Sara

    (PhD. Candidate in Oil and Gas Economics, Allameh Tabataba'i University)

  • Neisy, Abdolsadeh

    (Associate Professor of Mathematics, Allameh Tabataba'i University)

  • Mohammadi, Teymour

    (Associate Professor of Economics, Allameh Tabataba'i University)

Abstract

The drastic oil price fluctuations in recent years have made researchers and policymakers curious about the role of each structural shock in the Variability of crude oil prices. In this study, fluctuations of WTI & ORB prices are analyzed in the form of a structural vector auto regression model (SVAR) over the period from 2006 to 2018. Based on historical decomposition of WIT price, fluctuations of crude oil price in 2008 are mainly due to a combination of structural shocks, in which oil demand shocks play a significant role in the sharp fall of oil prices since the second half of 2008 Onwards. While the reason for the fall in WIT crude oil price in the second half of 2014 was largely due to supply shocks and oil inventory demand shocks. During this period, contango has accelerated the accumulation of crude oil commercial stocks and has intensified the oil price fall

Suggested Citation

  • Azimi, Sara & Neisy, Abdolsadeh & Mohammadi, Teymour, 2019. "Role of Structural Shocks on Fluctuations of Crude Oil Prices," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 6(1), pages 241-264, May.
    • Handle: RePEc:ris:qjatoe:0145
    as

    Download full text from publisher

    File URL: https://ecoj.tabrizu.ac.ir/article_8884_fd64bc46351f93f230e51276bb5a336d.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Oil price fluctuations; Structural shocks; Fundamental shocks;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0145. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sakineh Sojoodi (email available below). General contact details of provider: https://edirc.repec.org/data/fetabir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.