Editorial

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2 pages, 147 KiB

Open AccessEditorial

Special Issue on Global Market for Crude Oil

by Pierre Failler

Energies 2021, 14(4), 1199; https://doi.org/10.3390/en14041199 - 23 Feb 2021

Cited by 4 | Viewed by 1666

Abstract

The dynamic of the world’s crude oil market has drastically changed over the last decade [...] Full article

(This article belongs to the Special Issue Global Market for Crude Oil)

Research

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21 pages, 739 KiB

Open AccessArticle

Determining If Oil Prices Significantly Affect Renewable Energy Investment in African Countries with Energy Security Concerns

by Ishaya Tambari and Pierre Failler

Energies 2020, 13(24), 6740; https://doi.org/10.3390/en13246740 - 21 Dec 2020

Cited by 11 | Viewed by 2932

Abstract

As concerns regarding the adverse impacts of energy production and consumption on the environment grow, countries across the world are now charged with developing effective strategies that provide energy security and protect the environment. This means that efforts to generate significant investments and [...] Read more.

As concerns regarding the adverse impacts of energy production and consumption on the environment grow, countries across the world are now charged with developing effective strategies that provide energy security and protect the environment. This means that efforts to generate significant investments and business opportunities to boost the growth of renewable energy need to increase rapidly. However, there are limited studies on what will facilitate the increase of renewable energy investment in Africa. The main factor considered in this study relates to the sensitivity to changes in oil prices, gross domestic product (GDP), interest rate and oil price volatility’s impact on the renewable energy investment (REI) in countries with energy security concerns and if there is any significant influence from oil price shocks. With the help of an unrestricted vector retrogressive model and an annual panel data approach that covers the period 1990–2018, this paper examines the link between renewable energy investment and three macroeconomic variables: oil prices, GDP growth-adjusted interest rates and oil price volatility. The results indicate that REI exhibited immediate positive responses to oil shocks. However, renewable energy investment continued to fluctuate negatively in response to GDP. The results also show that the REI responded positively to interest rates in Africa and it exhibited immediate negative responses to oil price volatility but became positive after the second period. Full article

(This article belongs to the Special Issue Global Market for Crude Oil)

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11 pages, 2287 KiB

Open AccessArticle

Bubbles in Crude Oil and Commodity Energy Index: New Evidence

by Christos Floros and Georgios Galyfianakis

Energies 2020, 13(24), 6648; https://doi.org/10.3390/en13246648 - 16 Dec 2020

Cited by 14 | Viewed by 2051

Abstract

This paper considers a long dataset of both Brent and West Texas Intermediate (WTI) crude oil prices and the Commodity (fuel) energy index (CEI) to identify possible bubbles. Using the Supremum Augmented Dickey–Fuller (SADF) test, we compare results from WTI and Brent with [...] Read more.

This paper considers a long dataset of both Brent and West Texas Intermediate (WTI) crude oil prices and the Commodity (fuel) energy index (CEI) to identify possible bubbles. Using the Supremum Augmented Dickey–Fuller (SADF) test, we compare results from WTI and Brent with CEI. We prove that the CEI follows Brent crude oil (they provide similar bubble periods) and that Brent is recognized as a crude oil benchmark. Financial managers should incorporate it into their analysis and forecasts. The findings are strongly recommended to energy policymakers and investors. Full article

(This article belongs to the Special Issue Global Market for Crude Oil)

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12 pages, 1934 KiB

Open AccessArticle

Impact of US Shale Gas on the Vertical and Horizontal Dynamics of Ethylene Price

by Soohyeon Kim and Surim Oh

Energies 2020, 13(17), 4479; https://doi.org/10.3390/en13174479 - 31 Aug 2020

Cited by 7 | Viewed by 2314

Abstract

The rise of shale resources in the United States is changing the petrochemical industries. Ethylene, the first building block of petrochemical products, is becoming the first target to be hit by the shale boom, and its shifting price dynamics needs to be explored. [...] Read more.

The rise of shale resources in the United States is changing the petrochemical industries. Ethylene, the first building block of petrochemical products, is becoming the first target to be hit by the shale boom, and its shifting price dynamics needs to be explored. This study analyzes the transition of ethylene prices from crude oil to natural gas (vertical price dynamics) and investigates widening gaps among regional ethylene prices (horizontal price dynamics). To do this, we detect structural changes in cointegrating relationships and derive time-varying cointegration equations. In addition, for the long- and short-run dynamics, this study established and estimated an error correction model (ECM), with controlling, time-varying cointegrations. This study develops econometric studies by applying time-varying cointegration to nonenergy uses of fossil fuels. Thereby, our results discover that the feedstock structure of US ethylene is moving from crude oil to natural gas and that the comovement of US and Japanese prices is getting intensified. Full article

(This article belongs to the Special Issue Global Market for Crude Oil)

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19 pages, 1247 KiB

Open AccessArticle

Dynamic Characteristics of Crude Oil Price Fluctuation—From the Perspective of Crude Oil Price Influence Mechanism

by Jiaying Peng, Zhenghui Li and Benjamin M. Drakeford

Energies 2020, 13(17), 4465; https://doi.org/10.3390/en13174465 - 29 Aug 2020

Cited by 24 | Viewed by 4158

Abstract

The uncertainty in the evolution of crude oil price fluctuation has a significant impact on economic stability. Based on the decomposition of crude oil price fluctuation by the state-space model, this paper studies the fluctuation trend of crude oil prices and its causes. [...] Read more.

The uncertainty in the evolution of crude oil price fluctuation has a significant impact on economic stability. Based on the decomposition of crude oil price fluctuation by the state-space model, this paper studies the fluctuation trend of crude oil prices and its causes. The nonlinearity autoregressive distribute lag approach (NARDL) model is used to capture the influence mechanism characteristics of crude oil prices at different positions and different fluctuation trends. An event study model with dummy variables is constructed to compare the effects of different types of events on crude oil price fluctuations. The empirical results indicate that the fluctuation of crude oil prices tends to strengthen on the whole, and there is a remarkable correlation between this trend and the influencing mechanism of crude oil price, namely, the fluctuation source structure. The influence mechanism of crude oil price fluctuation is asymmetric when the crude oil price is at different positions and under different trends. There is a strong correlation between event shocks and event types in the evolution of crude oil price fluctuation. Full article

(This article belongs to the Special Issue Global Market for Crude Oil)

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20 pages, 4552 KiB

Open AccessArticle

Do Tense Geopolitical Factors Drive Crude Oil Prices?

by Fen Li, Zhehao Huang, Junhao Zhong and Khaldoon Albitar

Energies 2020, 13(16), 4277; https://doi.org/10.3390/en13164277 - 18 Aug 2020

Cited by 21 | Viewed by 4421

Abstract

Geopolitical factors are considered a crucial factor that makes a difference in crude oil prices. Over the last three decades, many political events occurred frequently, causing short-term fluctuations in crude oil prices. This paper aims to examine the dynamic correlation and causal link [...] Read more.

Geopolitical factors are considered a crucial factor that makes a difference in crude oil prices. Over the last three decades, many political events occurred frequently, causing short-term fluctuations in crude oil prices. This paper aims to examine the dynamic correlation and causal link between geopolitical factors and crude oil prices based on data from June 1987 to February 2020. By using a time-varying copula approach, it is shown that the correlation between geopolitical factors and crude oil prices is strong during periods of political tensions. The GPA (geopolitical acts) index, as the real factor, drives the rise in prices of crude oil. Moreover, the dynamic correlation between geopolitical factors and crude oil prices shows strong volatility over time during periods of political tensions. We also found unidirectional causality running from geopolitical factors to crude oil prices by using the Granger causality test. Full article

(This article belongs to the Special Issue Global Market for Crude Oil)

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24 pages, 1579 KiB

Open AccessArticle

Energy Price and Energy Efficiency in China: A Linear and Nonlinear Empirical Investigation

by Peng Hou, Yilin Li, Yong Tan and Yuanjie Hou

Energies 2020, 13(16), 4068; https://doi.org/10.3390/en13164068 - 06 Aug 2020

Cited by 8 | Viewed by 2185

Abstract

The empirical conclusions regarding the relationship between energy price and energy efficiency are relatively mixed. This paper systematically examines the influence of energy price on energy efficiency in China based on data from 30 provinces between 2003 and 2017, using linear and nonlinear [...] Read more.

The empirical conclusions regarding the relationship between energy price and energy efficiency are relatively mixed. This paper systematically examines the influence of energy price on energy efficiency in China based on data from 30 provinces between 2003 and 2017, using linear and nonlinear effect analysis. We found that the impact of energy price on energy efficiency in China was positive in general. However, there existed heterogeneous effects of energy price on energy efficiency in various regions, and the effect differed with differences in energy efficiency levels based on the panel quantile regression analysis. Finally, the nonlinear effect analysis based on the panel threshold model indicated that the effect of energy price on energy efficiency increased with the rise of the environmental regulation level and economic growth rate, while it decreased with the ascent of the degree of energy price distortion and economic development level. In particular, when the value of a region’s economic development level and economic growth rate was within a certain range, the impact was not statistically significant. Overall, these findings contribute to a deeper understanding regarding the effect of energy price on energy efficiency in China. Full article

(This article belongs to the Special Issue Global Market for Crude Oil)

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18 pages, 950 KiB

Open AccessArticle

Does Energy Price Induce China’s Green Energy Innovation?

by Yue Liu, Siming Liu, Xueying Xu and Pierre Failler

Energies 2020, 13(15), 4034; https://doi.org/10.3390/en13154034 - 04 Aug 2020

Cited by 19 | Viewed by 2917

Abstract

This paper aims to comprehensively analyze the relationship between energy price and green energy innovation in China, and first studies the impact of energy price on China’s green energy innovation, then further investigates the moderating role of energy price distortion in the price–innovation [...] Read more.

This paper aims to comprehensively analyze the relationship between energy price and green energy innovation in China, and first studies the impact of energy price on China’s green energy innovation, then further investigates the moderating role of energy price distortion in the price–innovation relationship, especially in the context of lagging energy marketization level in the process of China’s transition from planned economy to the market economy. Based on the data of 30 provinces in China from 2003 to 2017, this paper provides a measurement of green energy innovation capacity through the number of “alternative energy production” and “energy conservation” patents. Our results show that energy price has a significantly positive impact on China’s green energy innovation, no matter the number of green energy patent applications or the number of green energy patent grants is used as the proxy of green energy innovation capacity. However, there exists heterogeneity related to the influence of energy price on green energy innovation. Specifically, energy price has a noticeable role in promoting green energy innovation in central and western China, but not in eastern China. Further research results show that energy price distortion significantly reduces the inducing effect of energy price on green energy innovation. Meanwhile, the distortion degrees of energy price in the central and western regions of China are significantly lower than that in the eastern region, which explains to a large extent why the inducing effect of energy price on innovation is more prominent in the central and western regions. Full article

(This article belongs to the Special Issue Global Market for Crude Oil)

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19 pages, 8189 KiB

Open AccessArticle

Can Crude Oil Serve as a Hedging Asset for Underlying Securities?—Research on the Heterogenous Correlation between Crude Oil and Stock Index

by Sa Xu, Ziqing Du and Hai Zhang

Energies 2020, 13(12), 3139; https://doi.org/10.3390/en13123139 - 17 Jun 2020

Cited by 21 | Viewed by 2711

Abstract

In the increasingly frequent global financial turmoil, investors prefer to invest in stable assets to hedge risks. Crude oil naturally has dual use value as a general commodity and as a financial asset, which has attracted wide attention. In this paper, we adopt [...] Read more.

In the increasingly frequent global financial turmoil, investors prefer to invest in stable assets to hedge risks. Crude oil naturally has dual use value as a general commodity and as a financial asset, which has attracted wide attention. In this paper, we adopt a wavelet coherence analysis to study the standard of crude oil as a hedging asset and analyze the dynamic correlation of crude oil and stock market price fluctuations in the four economies of the United States, Japan, China and Hong Kong at different frequencies. The empirical evidence shows that crude oil can be conditionally used as a hedging asset for underlying securities. From the perspective of space, crude oil is suitable for investors in China’s stock market as a hedging asset, while for stock markets in the US, Japan and Hong Kong, the ability of crude oil to hedge risk has been greatly weakened. From the perspective of investment term, although crude oil cannot be regarded as a hedging asset for long-term investment, it can still play a hedging role in the short term. When the market is in a state of panic, the ability of oil to hedge risk is stronger. Full article

(This article belongs to the Special Issue Global Market for Crude Oil)

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8 pages, 965 KiB

Open AccessArticle

The Strategy of South Korea in the Global Oil Market

by Jaehyung An, Alexey Mikhaylov and Sang-Uk Jung

Energies 2020, 13(10), 2491; https://doi.org/10.3390/en13102491 - 15 May 2020

Cited by 57 | Viewed by 3466

Abstract

The paper analyzes South Korea’s strategy in the global oil market. South Korean oil cooperation is characterized by the creation or termination of joint projects in the oil sector, as well as the Republic of Korea’s national project for the diversification of state-energy [...] Read more.

The paper analyzes South Korea’s strategy in the global oil market. South Korean oil cooperation is characterized by the creation or termination of joint projects in the oil sector, as well as the Republic of Korea’s national project for the diversification of state-energy suppliers. Oil cooperation currently has great potential, and the conditions that have developed at the highest level allow open discussions about positive dynamics for short-term and medium-term prospects in the field of oil cooperation. The analysis presented here includes export and import connections in the oil market. The authorities of the current administration of the Republic of Korea have adopted a new political stance towards the north, in accordance with which the state is actively developing and establishing relations with the Democratic People’s Republic of Korea (DPRK) and the Russian Federation. In the coming years, South Korea aims to renew and revise potential projects in the field of oil cooperation. The main result of this is that the political climate of the Republic of Korea is currently concentrated on the development of an oil cooperation strategy. Full article

(This article belongs to the Special Issue Global Market for Crude Oil)

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