THE US DOLLAR EXCHANGE RATE AND THE DEMAND FOR OIL

Selien De Schryder and Gert Peersman ()

Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration

Abstract: Using recent advances in panel data estimation techniques, we .find that an appreciation of the US dollar exchange rate leads to a significant decline in oil demand for a sample of 65 oil-importing countries. The estimated effect turns out to be considerably larger than the impact of a shift in the global crude oil price expressed in US dollar. This .finding appears to be the consequence of a stronger pass-through of changes in the US dollar exchange rate to domestic end-user oil products prices relative to changes in the global crude oil price. Furthermore, we demonstrate the relevance of US dollar fluctuations for global oil price dynamics.

Keywords: Oil demand; US dollar exchange rate; oil price pass-through; panel data (search for similar items in EconPapers)
JEL-codes: C33 F31 Q41 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2014-11
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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http://wps-feb.ugent.be/Papers/wp_14_893.pdf (application/pdf)

Related works:
Journal Article: The U.S. Dollar Exchange Rate and the Demand for Oil (2016)
Journal Article: The U.S. Dollar Exchange Rate and the Demand for Oil (2015)
Journal Article: The U.S. Dollar Exchange Rate and the Demand for Oil (2015)
Working Paper: The U.S. Dollar Exchange Rate and the Demand for Oil (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:rug:rugwps:14/893

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