Crude oil price differentials, product heterogeneity and institutional arrangements

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...

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Detalles Bibliográficos
Autores: Giulietti, Monica, Iregui, Ana María, Otero Cardona, Jesús Gilberto
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2014
País:Colombia
Institución:Universidad del Rosario
Repositorio:Repositorio EdocUR - U. Rosario
Idioma:inglés
OAI Identifier:oai:repository.urosario.edu.co:10336/23933
Acceso en línea:https://doi.org/10.1016/j.eneco.2014.10.006
https://repository.urosario.edu.co/handle/10336/23933
Access Level:acceso abierto
Palabra clave:Costs
Oil shale
Cross-section analysis
Crude oil prices
Dynamic adjustment
Institutional arrangement
Institutional factors
Long-term relationships
Methodological approach
Physical similarities
Crude oil
Benchmarking
Heterogeneity
Institutional framework
Oil production
Oil supply
Price dynamics
Time series analysis
Descripción
Sumario: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. © 2014 Elsevier B.V.