IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v296y2024ics0360544224008260.html
   My bibliography  Save this article

Detecting the horizontal/vertical price relationship patterns in the global oil industry chain through network analysis

Author

Listed:
  • Guo, Sui
  • Li, Huajiao
  • An, Haizhong
  • Ma, Ning
  • Sun, Qingru
  • Feng, Sida
  • Sun, Guangzhao
  • Liu, Yanxin

Abstract

The investigation of price relationship patterns within the horizontal regional and vertical industry chain domains of oil market represents a crucial yet under-researched area. This study tackles the inherent complexities in identifying these patterns, arising from three key challenges: the presence of numerous downstream petrochemical products, the interconnectedness of oil product prices across two domains, and the existence of price influence loop. To address these challenges, this study selected 51 oil products from various regions and different segments of oil industry chain, and calculated and tested their price lead-lag relationships. Subsequently, we established and analyzed the price lead-lag relationship networks within two domains. Furthermore, we expanded network topological structure analysis from a single domain to encompass both domains. Finally, employing the network motif analysis method, we successfully detected the price relationship patterns, taking into consideration the intricate nature of price influence loops. Our findings illuminate the general characteristics of the oil market within two domains but also shed light on previous ignored price lead-lag relationships. The thorough analysis and conclusions drawn from this study offer detailed policy implications to downstream refineries and policy makers.

Suggested Citation

  • Guo, Sui & Li, Huajiao & An, Haizhong & Ma, Ning & Sun, Qingru & Feng, Sida & Sun, Guangzhao & Liu, Yanxin, 2024. "Detecting the horizontal/vertical price relationship patterns in the global oil industry chain through network analysis," Energy, Elsevier, vol. 296(C).
    • Handle: RePEc:eee:energy:v:296:y:2024:i:c:s0360544224008260
    DOI: 10.1016/j.energy.2024.131054
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224008260
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.131054?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:296:y:2024:i:c:s0360544224008260. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.