Oil Price Volatility across Timeframes and its Impact on ASEAN Stock Indices: Changes Observed since the COVID-19 Pandemic

Ali Burhan Khan (), Muhammad Saif ul Islam (), Fauzia Mubarik (), Muhammad Fareed (), Noor Azlinna Azizan (), Khalid Al Qatiti () and Ahmad Faizuddin ()
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Ali Burhan Khan: Department of Management Sciences, National University of Modern Languages, Islamabad, Pakistan
Muhammad Saif ul Islam: Riphah School of Leadership, Faculty of Management Sciences, Riphah International University, Pakistan
Fauzia Mubarik: Department of Accounting and Finance, National University of Modern Languages, Islamabad, Pakistan
Muhammad Fareed: School of Business, VIZJA University, Poland
Noor Azlinna Azizan: SolBridge International School of Business, Woosong University Foundation, Daejeon, South Korea
Khalid Al Qatiti: Department of Management, Faculty of Business, Sohar University, Oman
Ahmad Faizuddin: School of Education and Liberal Arts, INTI International University, Malaysia

International Journal of Energy Economics and Policy, 2025, vol. 15, issue 6, 355-363

Abstract: Oil is considered a vital energy source and changes in oil prices have important implications for developed as well as developing economies. By keeping this point of view, the current study aimed at analyzing the impact of oil prices on the stock prices of the most dynamic region of the world namely; The Association of South East Asian Nations (ASEAN). The post-COVID-19 data period was selected by the authors because the COVID-19 pandemic created oil price shocks which translated into global oil prices. The empirical findings demonstrate that oil prices significantly affect ASEAN stock indices. Nonetheless, the effect differs at various frequency levels. In the short to medium term, market participants should be cognisant of oil price volatility and its immediate effects. In the long term, investors and governments should prioritise basic economic indicators as stock markets increasingly detach from oil price volatility. These findings indicate that investors and governments ought to consider varying time horizons. In the short and medium term, oil price fluctuations considerably affect stock markets, necessitating effective risk management measures. Ultimately, attention should transition to more comprehensive economic indicators, as the stock market becomes increasingly less affected by oil prices. This comprehension is essential for formulating educated investment strategies and influencing energy policies in the ASEAN region.

Keywords: Economic Impact; Market Trends; Oil Prices; ASEAN Markets; Post-COVID-19 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.32479/ijeep.19974

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