The Empirical Role of the Exchange Rate on the Crude-Oil Price Formation

Energy Economics 26 (2004) 783-799

Posted: 31 Mar 2013

See all articles by Ayoub Yousefi

Ayoub Yousefi

University of Western Ontario - Department of Economics

Tony S. Wirjanto

University of Waterloo - School of Accounting and Finance; University of Waterloo, Department of Statistics & Actuarial Science

Date Written: 2004

Abstract

This paper adopts a novel empirical approach to the crude-oil price formation for the purpose of understanding the price reactions of OPEC member countries to changes in the exchange rate of the US dollar against other major currencies and prices of other members. The results are broadly consistent with the view of the absence of a unified OPEC determined price in the international crude market literature. In addition, the results also highlight a cross-regional dimension of the crude oil market.

Keywords: Exchange rate pass through, Invoicing currency, Crude oil prices, OPEC

JEL Classification: F3, D4

Suggested Citation

Yousefi, Ayoub and Wirjanto, Tony S., The Empirical Role of the Exchange Rate on the Crude-Oil Price Formation (2004). Energy Economics 26 (2004) 783-799, Available at SSRN: https://ssrn.com/abstract=2241880

Ayoub Yousefi

University of Western Ontario - Department of Economics ( email )

London, Ontario N6A 5B8
Canada

Tony S. Wirjanto (Contact Author)

University of Waterloo - School of Accounting and Finance ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1
Canada
519-888-4567 x35210 (Phone)

HOME PAGE: http://https://uwaterloo.ca/statistics-and-actuarial-science/people-profiles/tony-wirjanto

University of Waterloo, Department of Statistics & Actuarial Science ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1
Canada
519-888-4567 x35210 (Phone)
519-746-1875 (Fax)

HOME PAGE: http://math.uwaterloo.ca/statistics-and-actuarial-science/people-profiles/tony-wirjanto

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