Energy profile and oil shocks: a dynamic analysis of their impact on stock markets

Salem Adel Ziadat, Aktham Maghyereh

    Research output: Contribution to journalArticlepeer-review

    Abstract

    The paper investigates the intricate relationship between oil and stock markets in the context of different oil price shocks and a country's energy profile. Focusing on five major oil-producing and consuming countries, the analysis reveals a significant, time-varying dimension in the oil-stock relationship. It highlights the importance of distinguishing between various types of oil shocks and a nation's reliance on oil revenues. The paper finds that countries heavily reliant on oil revenues exhibit robust responses to oil supply and demand shocks. In contrast, oil producers show more moderate reactions due to lower oil revenue dependence. This evidences the importance of recognizing the multifaceted impacts of oil shocks on different economies for making well-informed decisions in asset allocation, portfolio management, and policymaking.

    Original languageEnglish
    JournalEurasian Economic Review
    DOIs
    Publication statusAccepted/In press - 2024

    Keywords

    • Oil price decomposition
    • Oil shocks
    • Stock markets
    • Time-varying causality

    ASJC Scopus subject areas

    • General Economics,Econometrics and Finance

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