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Crude oil price decision under considering emergency and release of strategic petroleum reserves

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  • Liao, Shujie
  • Wang, Fengxia
  • Wu, Ting
  • Pan, Wei

Abstract

With the development of economics, oil has an important influence on social stability. The key challenge for oil import is steady supply. However, in this article, we do not focus on this aspect but the fluctuation of crude oil price when emergency and release of strategic petroleum reserves occur. It is a very complex research in real-life environment. In this situation, case analysis is the best tool for solving this problem. Our model is formulated in such a way as to simultaneously consider new oil price breakpoints, different emergency and so on. For solving the problem, a new programming is developed. Finally, an analysis is presented to illustrate the proposed method. The results show: (1) Natural disasters have less influences on crude oil price than social conflicts. As the impact of Hurricane Katrina is 3.27, less than 4.044 of Libyan conflict, and the subsequent influence is also limited, 5 days less than 8 days of the conflict. (2) Releases of strategic petroleum reserves are effective for the reliefs of oil price fluctuations caused by emergencies, respectively 41.05, 6.48 and 5, presenting a weakening trend of stabilizing role.

Suggested Citation

  • Liao, Shujie & Wang, Fengxia & Wu, Ting & Pan, Wei, 2016. "Crude oil price decision under considering emergency and release of strategic petroleum reserves," Energy, Elsevier, vol. 102(C), pages 436-443.
    • Handle: RePEc:eee:energy:v:102:y:2016:i:c:p:436-443
    DOI: 10.1016/j.energy.2016.02.043
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    Cited by:

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    2. Liu, Zhen & Tang, Yuk Ming & Chau, Ka Yin & Chien, Fengsheng & Iqbal, Wasim & Sadiq, Muhammad, 2021. "Incorporating strategic petroleum reserve and welfare losses: A way forward for the policy development of crude oil resources in South Asia," Resources Policy, Elsevier, vol. 74(C).
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    6. Aiman Fadil & Paul Davis & John Geraghty, 2023. "A Mixed-Method Approach to Determine the Successful Factors Affecting the Criticality Level of Intermediate and Final Products on National Basis: A Case Study from Saudi Arabia," Sustainability, MDPI, vol. 15(7), pages 1-29, March.
    7. Tan, Hua & Iqbal, Nadeem & Wu, Zhengzhong, 2022. "Evaluating the impact of stakeholder engagement for renewable energy sources and economic growth for CO2 emission," Renewable Energy, Elsevier, vol. 198(C), pages 999-1007.
    8. Li, Tianxiao & Liu, Pei & Li, Zheng, 2021. "Optimal scale of natural gas reserves in China under increasing and fluctuating demand: A quantitative analysis," Energy Policy, Elsevier, vol. 152(C).
    9. Gao, Dan & Li, Zheng & Liu, Pei & Zhao, Jiazhu & Zhang, Yuning & Li, Canbing, 2018. "A coordinated energy security model taking strategic petroleum reserve and alternative fuels into consideration," Energy, Elsevier, vol. 145(C), pages 171-181.

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