Brent Crude

About: Brent Crude is a research topic. Over the lifetime, 548 publications have been published within this topic receiving 9879 citations.

China: The Ultimate Decider on Crude Oil Prices

Abstract: The single most important driver of shifting dynamics in world oil markets is China It alone will continue to account for most of the world demand growth throughout this decade and probably the next By October 2013, China’s net oil imports are projected to exceed those of the United States on a monthly basis and by 2014 on an annual basis, making it the largest importer of oil in the world In order to satisfy its thirst for oil, China has aggressively used its financial reserves to offer billions in development credit, underwritten with oil, especially in Africa, Latin America, and even Russia From energy security point of view, one of the biggest threats to maintaining a stable oil price in the long run will be satisfying growth in Chinese demand That is what is putting pressure on prices An optimistic oil price could range from $100 to $130a barrel However, this paper will argue that in a supply-constrained world and with OPEC’s spare capacity continuing to shrink, oil is unlikely to spend much time hovering around that price range It will suggest that prices will continue to spike over the next five years occasionally reaching $200/barrel in order to keep oil demand in check The paper will also argue that the global economy can at most sustain oil prices that represent just about 6% of GDP translating into $137 a barrel of Brent crude by 2015, $156 by 2020, and $241 by 2035 It will conclude that China’s steep-rising oil demand, its search for new sources of oil and also its acquiring of oil assets around the world will ultimately give it the final say on the oil price globally

Price Dynamics and Measuring the Contagion between Brent Crude and Heating Oil (US-Diesel) Pre and Post COVID-19 Outbreak

Abstract: The objective of this work is to analyze the price dynamics and the level of association between the Brent crude oil prices and heating oil (HO), i.e., US diesel. The data series are obtained from daily future contract prices of Chicago Mercantile Exchange (CME) group exchanges and the Intercontinental Exchange (ICE). A continuous evaluation of the Detrended Cross-Correlation Analysis (DCCA) between Brent crude oil prices vis-a-vis HO is proposed by means of the rolling window approach, allowing a dynamic analysis of their cross-correlations covering two periods, namely from January 2018 to December 2019 (before the COVID-19 pandemic) and from January 2020 to December 2021 (during the COVID-19 pandemic). The results indicate that there is a strong evidence of contagion in cross-correlation due to the initial impact of the pandemic, but the HO–Brent correlation fully recovered after approximately 200 days. However, lower time scales (n) are also sensitive to supply shortages in the short term and can be most reliable for agents that might not take long positions. Measuring this dynamic cross-correlation can provide useful information for investors and agents in the oil and energy markets.

Oil Prices and Stock Markets: An Empirical Analysis From Russia, Canada, USA and Japan

Abstract: Purpose – The aim of this study is to examine the relationship between oil prices and stock markets at the aggregate and sector level in countries which have different characteristics. Design/methodology/approach – The relationship among stock markets, sectoral stock indices and oil price changes are examined for Russia and Canada which are net oil exporters and United States and Japan which are net oil importers by using Johansen cointegration test. Findings – The findings of this study show that there are significant and mostly positive relationships between Russian MOEX stock market indices and crude oil prices. However; significant Johansen cointegration between Brent Crude Oil prices and most of the Canadian, U.S. and Japanese stock market aggregate and sectoral indices are not reported. Discussion – According to the findings, it can be stated that the long term relationship between stock market indices and crude oil prices is related to the changing conditions in the profitability of the corporations, inflation and monetary policy as a reaction to moving oil prices.