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Oil Price News and COVID-19 - Is There Any Connection

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  • Paresh Kumar Narayan

    (Asia Pacific Applied Economics Association)

Abstract

We evaluate the relative importance of COVID-19 infections and oil price news in influencing oil prices. We show that when the number of new COVID-19 infections surpasses 84,479, COVID-19 exerts a bigger effect on oil prices. Oil price news when conditioned on COVID-19 cases have limited effects on price. When oil price volatility is used as a threshold, at higher levels of volatility, both COVID-19 cases and negative oil price news influence oil prices.

Suggested Citation

  • Paresh Kumar Narayan, 2021. "Oil Price News and COVID-19 - Is There Any Connection," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 1(1), pages 1-4.
    • Handle: RePEc:ayb:jrnerl:26
    DOI: 2021/06/16
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    References listed on IDEAS

    as
    1. Narayan, Paresh Kumar, 2019. "Can stale oil price news predict stock returns?," Energy Economics, Elsevier, vol. 83(C), pages 430-444.
    2. Paresh Kumar Narayan & Stephan Popp, 2010. "A new unit root test with two structural breaks in level and slope at unknown time," Journal of Applied Statistics, Taylor & Francis Journals, vol. 37(9), pages 1425-1438.
    3. Zhang, Yue-Jun & Wang, Jin-Li, 2019. "Do high-frequency stock market data help forecast crude oil prices? Evidence from the MIDAS models," Energy Economics, Elsevier, vol. 78(C), pages 192-201.
    4. Paresh Kumar Narayan & Stephan Popp, 2013. "Size and power properties of structural break unit root tests," Applied Economics, Taylor & Francis Journals, vol. 45(6), pages 721-728, February.
    5. Gong, Xu & Lin, Boqiang, 2017. "Forecasting the good and bad uncertainties of crude oil prices using a HAR framework," Energy Economics, Elsevier, vol. 67(C), pages 315-327.
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    Cited by:

    1. K.P. Prabheesh & Sanjiv Kumar, 2021. "The Dynamics of Oil Prices, Exchange Rates, and the Stock Market Under COVID-19 Uncertainty - Evidence From India," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 2(3), pages 1-6.
    2. Tian, Guangning & Peng, Yuchao & Meng, Yuhao, 2023. "Forecasting crude oil prices in the COVID-19 era: Can machine learn better?," Energy Economics, Elsevier, vol. 125(C).
    3. Mila Andreani & Vincenzo Candila & Giacomo Morelli & Lea Petrella, 2021. "Multivariate Analysis of Energy Commodities during the COVID-19 Pandemic: Evidence from a Mixed-Frequency Approach," Risks, MDPI, vol. 9(8), pages 1-20, August.
    4. Mastroeni, Loretta & Mazzoccoli, Alessandro & Vellucci, Pierluigi, 2024. "Wavelet entropy and complexity–entropy curves approach for energy commodity price predictability amid the transition to alternative energy sources," Chaos, Solitons & Fractals, Elsevier, vol. 184(C).
    5. Mengxu Xiong, 2021. "Uncertainty in the Pandemic and the Energy Stock Market - Evidence From China," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 2(3), pages 1-4.

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    • O - Economic Development, Innovation, Technological Change, and Growth

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