Oil market structure, network effects and the choice of currency for oil invoicing
AbstractA recurring theme in recent years in the debate on the international role of currencies has been the possiblity of pricing oil in euro. This paper contributes to these debates by providing a detailed review of the empirical evidence regarding the market for crude oil and current oil invoicing practices. It introduces a network effect model to identify the conditions under which a parallel invoicing in different currencies would be possible. The paper also includes a simulation designed to illustrate the dynamics of the currency choice of oil invoicing.
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Bibliographic InfoPaper provided by European Central Bank in its series Occasional Paper Series with number 77.
Length: 31 pages
Date of creation: Dec 2007
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Other versions of this item:
- Mileva, Elitza & Siegfried, Nikolaus, 2012. "Oil market structure, network effects and the choice of currency for oil invoicing," Energy Policy, Elsevier, vol. 44(C), pages 385-394.
- NEP-ALL-2008-01-05 (All new papers)
- NEP-CBA-2008-01-05 (Central Banking)
- NEP-ENE-2008-01-05 (Energy Economics)
- NEP-NET-2008-01-05 (Network Economics)
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- A. Malliaris & Mary Malliaris, 2013.
"Are oil, gold and the euro inter-related? Time series and neural network analysis,"
Review of Quantitative Finance and Accounting,
Springer, vol. 40(1), pages 1-14, January.
- Malliaris, A.G. & Malliaris, Mary, 2011. "Are oil, gold and the euro inter-related? time series and neural network analysis," MPRA Paper 35266, University Library of Munich, Germany.
- Filip Novotný, 2012. "The Link Between The Brent Crude Oil Price And The Us Dollar Exchange Rate," Prague Economic Papers, University of Economics, Prague, vol. 2012(2), pages 220-232.
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