The Empirical Role of the Exchange Rate on the Crude-Oil Price Formation
Energy Economics 26 (2004) 783-799
Posted: 31 Mar 2013
Date Written: 2004
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: Suggested Citation