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Oil Price Shocks and Global Food Prices: Evidence on the Energy–Food Nexus

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  • Silvius Stanciu

    (Dunarea de Jos University of Galati, Galati, Romania)

Abstract

The paper proposes an analysis of the relationship between Brent crude oil prices and global food prices within the framework of the Energy–Food Nexus. Using monthly data for the period January 1990–May 2026, the analysis considers the FAO Food Price Index and its main commodity sub-indices: meat, dairy products, cereals, vegetable oils, and sugar. The methodology combines descriptive statistics, correlation analysis, unit root testing, ARDL modelling, and Granger causality testing to assess both overall and commodity-specific transmission effects. The results show strong positive relationships between oil prices and food prices, with the highest correlations observed for dairy products and cereals. ARDL estimates confirm positive long-run effects of Brent crude oil prices on the FAO Food Price Index and selected food commodity groups. Dairy products and cereals appear to be the most sensitive categories, while meat prices show comparatively lower volatility and weaker sensitivity to oil market fluctuations. The findings highlight the heterogeneous nature of the Energy–Food Nexus and suggest that energy price shocks are transmitted unevenly across food markets. These results have important implications for food security, agricultural policy, and the resilience of global agri-food systems in a context of geopolitical instability and commodity market volatility.

Suggested Citation

  • Silvius Stanciu, 2026. "Oil Price Shocks and Global Food Prices: Evidence on the Energy–Food Nexus," Journal of Agriculture and Rural Development Studies, "Dunarea de Jos" University of Galati, Doctoral Field Engineering and Management in Agriculture and Rural Development, issue 2, pages 5-22.
    • Handle: RePEc:ddj:ejards:y:2026:i:2:p:5-22
    DOI: https://doi.org/10.35219/jards.2026.2.01
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    References listed on IDEAS

    as
    1. Serra, Teresa, 2011. "Volatility spillovers between food and energy markets: A semiparametric approach," Energy Economics, Elsevier, vol. 33(6), pages 1155-1164.
    2. repec:iwt:jounls:h051821 is not listed on IDEAS
    3. Sonia Akter, 2020. "The impact of COVID-19 related ‘stay-at-home’ restrictions on food prices in Europe: findings from a preliminary analysis," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(4), pages 719-725, August.
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