Crude oil price differentials, product heterogeneity and institutional arrangements

Monica Giulietti, Ana Iregui and Jesus Otero

Energy Economics, 2014, vol. 46, issue S1, S28-S32

Abstract: We adopt time-series and cross-section methods to analyse long-term relationships between pairs of crude oil prices and assess how physical and institutional factors affect their speed of reaction to exogenous shocks. Using a methodological approach which does not require identifying specific crudes as benchmarks, we show that the overwhelming majority of prices have stable long term relationships. We also find that crudes with physical similarity converge quickly after a shock, while prices for oil produced in OPEC countries are relatively slow to revert to equilibrium after a shock.

Keywords: Crude oil prices; Dynamic adjustment; Cross-section analysis (search for similar items in EconPapers)
JEL-codes: C33 F32 L7 Q4 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:46:y:2014:i:s1:p:s28-s32

DOI: 10.1016/j.eneco.2014.10.006

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