How far is gas from becoming a global commodity?

Luís Aguiar-Conraria (), Gilmar Conceição () and Maria Joana Soares ()
Additional contact information
Gilmar Conceição: Faculdade de Economia e Gestão da Universidade Licungo
Maria Joana Soares: NIPE and Department of Mathematics, University of Minho

No 06/2021, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: While we can say that there is a global market for crude oil, we cannot say the same cannot for natural gas. There is a strand of literature that argues that, in the last decades, gas markets have become less regional and more global. We use wavelets to test this hypothesis and conclude otherwise: although the European and Japanese gas markets are signifcantly synchronized, they are much less than the oil markets, which we take as the benchmark. We also show that the North American gas market fluctuations are independent of the other gas markets. Finally, we show that the existing synchronization between gas markets almost vanishes once one filters out the effect of oil price variations, suggesting that it is the global oil market that connects the regional gas markets.

Keywords: Gas markets; Oil market; Wavelet Power Spectrum; Wavelet Coherency; Wavelet Phase-Difference (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-cwa, nep-ene and nep-reg
References: Add references at CitEc
Citations:

Downloads: (external link)
https://repositorium.sdum.uminho.pt/bitstream/1822/73471/1/WP%2006.2021.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nip:nipewp:6/2021

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in NIPE Working Papers from NIPE - Universidade do Minho Núcleo de Investigação em Políticas Económicas e Empresariais, Escola de Economia e Gestão, Universidade do Minho, P-4710-057 Braga, Portugal. Contact information at EDIRC.
Bibliographic data for series maintained by NIPE ().