The Lead–Lag Relationship between Oil Futures and Spot Prices—A Literature Review
Miroslava Zavadska (),
Lucía Morales () and
Joseph Coughlan ()
Additional contact information
Miroslava Zavadska: Economics Department, Moravian Business College, 779 00 Olomouc, Czech Republic
Lucía Morales: Finance, College of Business, Dublin Institute of Technology, D02 HF72 Dublin, Ireland
Joseph Coughlan: School of Business, Maynooth University, 9CH3+W7 Kildare, Ireland
International Journal of Financial Studies, 2018, vol. 6, issue 4, 1-22
Crude oil is the dominant energy resource worldwide. The focus of this paper is on its historical behaviour and subsequent implications for the global economy with an emphasis on the lead–lag relationship between spot and future prices. The paper examines the behaviour of oil spot and future prices and their determinants during periods of market uncertainty, particularly in the context of economic and financial crises. The analysis highlights a key controversy within the extant literature, as to whether spot or futures prices are the main crude oil price indicator. The literature review indicates that the lead–lag relationship is a dynamic one, especially during periods of sustained uncertainty, which leads to significant disagreements and incongruities among researchers regarding the price that plays a dominant role.
Keywords: energy; crude oil; lead lag relationship; crises; literature review (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 F2 F3 F41 F42 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gam:jijfss:v:6:y:2018:i:4:p:89-:d:179491
Access Statistics for this article
International Journal of Financial Studies is currently edited by Prof. Dr. Nicholas Apergis
More articles in International Journal of Financial Studies from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().