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Energy markets responds to Covid-19 pandemic

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  • Amri Amamou, Souhir
  • Aguir Bargaoui, Saoussen

Abstract

This paper aims to detect the sensitivity of the Oil market to different Covid-19 outbreak periods. To test its haven propriety, and its sensitivity to the study phase, our research investigates the Covid-19 indicators explanatory power. Using the OLS regression, our results reveal that new pandemic wave announcement declines the Oil market demand. It doubts its safe-haven property. In parallel, we detect that this market responds to the determining factors of the Covid-19 Pandemic. At this level, we found that the number of the reported cases has lost its explanatory power since the emergence of the second pandemic wave. On the contrary, mortality following this virus has become a significant explanatory factor.

Suggested Citation

  • Amri Amamou, Souhir & Aguir Bargaoui, Saoussen, 2022. "Energy markets responds to Covid-19 pandemic," Resources Policy, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:jrpoli:v:76:y:2022:i:c:s0301420722000046
    DOI: 10.1016/j.resourpol.2022.102551
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    References listed on IDEAS

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    1. Claudiu Albulescu, 2020. "Coronavirus and oil price crash," Papers 2003.06184, arXiv.org, revised Mar 2020.
    2. repec:hal:wpaper:halshs-02876529 is not listed on IDEAS
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    7. Honorata Nyga-Łukaszewska & Kentaka Aruga, 2020. "Energy Prices and COVID-Immunity: The Case of Crude Oil and Natural Gas Prices in the US and Japan," Energies, MDPI, vol. 13(23), pages 1-17, November.
    8. Ashraf, Badar Nadeem, 2020. "Stock markets’ reaction to COVID-19: Cases or fatalities?," Research in International Business and Finance, Elsevier, vol. 54(C).
    9. Dutta, Anupam & Das, Debojyoti & Jana, R.K. & Vo, Xuan Vinh, 2020. "COVID-19 and oil market crash: Revisiting the safe haven property of gold and Bitcoin," Resources Policy, Elsevier, vol. 69(C).
    10. Ding Liu & Weihong Sun & Xuan Zhang, 2020. "Is the Chinese Economy Well Positioned to Fight the COVID-19 Pandemic? the Financial Cycle Perspective," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2259-2276, August.
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    Cited by:

    1. Kaufmann, Robert K. & Schroer, Colter, 2023. "Social and environmental events disrupt the relation between motor gasoline prices and market fundamentals," Energy Economics, Elsevier, vol. 126(C).
    2. Sikorska-Pastuszka, Magdalena & Papież, Monika, 2023. "Dynamic volatility connectedness in the European electricity market," Energy Economics, Elsevier, vol. 127(PA).
    3. Daniel Stefan Armeanu & Stefan Cristian Gherghina & Jean Vasile Andrei & Camelia Catalina Joldes, 2023. "Evidence from the nonlinear autoregressive distributed lag model on the asymmetric influence of the first wave of the COVID-19 pandemic on energy markets," Energy & Environment, , vol. 34(5), pages 1433-1470, August.
    4. Farid, Saqib & Karim, Sitara & Naeem, Muhammad A. & Nepal, Rabindra & Jamasb, Tooraj, 2023. "Co-movement between dirty and clean energy: A time-frequency perspective," Energy Economics, Elsevier, vol. 119(C).
    5. Ali, Shoaib & Naveed, Muhammad & Youssef, Manel & Yousaf, Imran, 2024. "FinTech-powered integration: Navigating the static and dynamic connectedness between GCC equity markets and renewable energy cryptocurrencies," Resources Policy, Elsevier, vol. 89(C).
    6. Alam, Md Shabbir & Murshed, Muntasir & Manigandan, Palanisamy & Pachiyappan, Duraisamy & Abduvaxitovna, Shamansurova Zilola, 2023. "Forecasting oil, coal, and natural gas prices in the pre-and post-COVID scenarios: Contextual evidence from India using time series forecasting tools," Resources Policy, Elsevier, vol. 81(C).

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    More about this item

    Keywords

    Covid-19; Oil market; Outbreaks; Safe-haven;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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