Energy price volatility

Mosab I. Tabash

Chapter 49 in Elgar Encyclopedia of Energy Economics, 2025, pp 190-192 from Edward Elgar Publishing

Abstract: Variations in the price of oil could create uncertainty in the economy's overall growth and development. Rising oil costs are blamed for the rapidly increasing inflation on a global basis. Many countries have tried to restrict the rise in oil prices and the ensuing inflation, but failed due to certain uncontrolled circumstances. Civil upheavals, political shifts, border disputes, and regional wars involving oil-producing nations have historically disrupted oil supplies and raised oil prices among countries. Hedging energy price volatility against non-volatile assets can reduce the magnitude of such a volatile condition. Similarly, developing more flexible policies regarding the sale of energy commodities can be regarded as an alternative policy that can incorporate such uncertainty in energy prices. Approaching more stable countries for the sale of energy commodities can limit energy price shocks. Additionally, energy suppliers should develop such policies that mitigate the volatility in energy prices during uncertain economic shocks.

Keywords: Oil; Price Volatility; Energy; Commodities; Hedging; Economic Shocks (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035310364
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