Browsing by Subject "Oil prices"

Now showing 1 - 4 of 4

Open Access
Co-movements of crude oil prices
(Routledge, 2024-01-23) Karcı, Rüya; Doğan, Nükhet; Berument, M. Hakan
This paper investigates whether the world crude oil market is globalised in a ‘one great pool’ or is regionalised by examining the prices of 21 different types of crude oil from various regions worldwide. We employ monthly data from October 2011 to November 2020 to construct spatial panel data models. Using three weight matrices, we account for the physical properties affecting crude oil quality and geographical factors. The resulting empirical evidence reveals that although we cannot refute the globalisation hypothesis, there are distinct price mechanisms speciﬁc to each type of crude oil. The pricing of crude oil appears to be inﬂuenced by a combination of similar and dissimilar qualities, including American Petroleum Institute gravity (API) gravity, sulfur content and geographical location.
Open Access
The efects of two benchmarks on Russian crude oil prices
(Springer, 2022-10-05) Şahin, G.; Doğan, N.; Berüment, M. Hakan
This study analyzes the asymmetric effects of the price shocks of two global crude oil benchmarks (Dated Brent and Dubai) on three Russian crude oil prices: Urals, ESPO, and Sokol. The empirical evidence suggests that an increase in benchmark oil prices causes a rise in the selling prices of these Russian crude oil grades, and a drop in benchmarks decreases the prices. Russia has higher market power in North West Europe and the Mediterranean regions, while there is a more competitive market for Russian oils in Asia. Parallel to this, it is estimated that positive benchmark price shocks impact Urals crude oil grade sales prices more than negative ones in the North West Europe and Mediterranean markets. In contrast, negative benchmark price shocks impact ESPO and Sokol crude oil grade sales prices more than positive ones in the Asian markets. Russia’s main aim is to secure its oil revenues; hence, Russia can secure higher revenue by increasing oil prices more in a less competitive market than in a more competitive market. Additionally, the degree of asymmetry increases as the shock size rises. © 2022, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.
Open Access
Inflationary effect of crude oil prices in Turkey
(Elsevier BV, 2002) Berument, Hakan; Taşçı, H.
It is generally acknowledged that changes in oil prices affect economic welfare in ways that are not entirely reflected in transactions in the oil market. In this article, by using the 1990 input-output table, the inflationary effects of crude oil prices are investigated for Turkey. Under fixed nominal wages, profits, interest and rent earnings, the effect of increasing prices of oil on inflation is limited. However, when wages and the other three factors of income (profit, interest and rent) are adjusted to the general price level that includes the oil price increases, the inflationary effect of oil prices becomes significant. Hence, indexation could have very severe effects on an economy when oil prices increase and, in some cases, could even lead to hyperinflation. © 2002 Elsevier Science B.V. All rights reserved.
Open Access
Oil price shocks and the composition of current account balance
(Elsevier, 2020-02) Varlık, S.; Berument, M. Hakan
It is a well-established regularity that permanent oil price shocks do not have a permanent effect on the current account deficit. This requires that sub-components of the current account or trade balance will make the necessary adjustments to accommodate the higher energy bill of a country triggered by permanent crude oil price increases. Empirical evidence gathered from Turkey reveals that, in the long run, balancing the current account is provided by a permanent increase in the net exports of Agricultural Production, Maintenance and Repair Services, Travel, Construction, Financial Services, Compensation of Employees, and Goods under Merchanting (non-tradable components of the current account balance); and a permanent decrease in the net exports of Mining, Fishery, Other Goods for BEC Classification, Investment Income, Manufacturing Services on Physical Inputs Owned by Others, and Transport balances mostly in sectors that use energy heavily in production. All these responses are found to be statistically significant in the more than 24 periods we consider in this study.