Crude Oil Prices and Stock Markets in Major Oil Exporting Countries: Evidence on Decoupling Feature

Ibrahim Onour

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates common cyclical features between crude oil market and stock markets in major oil exporting countries including Saudi Arabia, UAE, and Kuwait. The results of the paper indicate, at low oil prices (below $40 per oil barrel) Saudi and Abu-Dhabi markets share common cyclical feature with oil market, but they digress from the oil market as oil prices rose above $40 per barrel. The decoupling feature indicate the capital markets and oil market respond in different pattern to cycle generating shocks, suggesting as higher oil prices may raise global investment risk, stock markets in these countries deflect from their key fundamental driver.

Keywords: Common trends; Shared cycles; nonlinear cointegration (search for similar items in EconPapers)
JEL-codes: C10 C50 F30 (search for similar items in EconPapers)
Date: 2010-05-10
New Economics Papers: this item is included in nep-ara and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Crude oil price and stock markets in major oil-exporting countries: evidence of decoupling feature (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:23334

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