Asymmetric effects of benchmark prices on Iraqi oil: Basrah Light, Basrah Heavy and Kirkuk

Abstract

This thesis assesses the asymmetric effects of benchmark oil prices on Basrah Light, Basrah Heavy and Kirkuk crude oil prices. The empirical evidence reveals that a decrease in benchmark prices decreases three Iraqi oil blends more than an increase in benchmark increases for three Iraqi blends. Moreover, as the magnitude of shocks to benchmarks increases, then the degree of asymmetry also increases.