Bidirectional causality in oil and gas markets

A-Tier
Journal: Energy Economics
Year: 2014
Volume: 42
Issue: C
Pages: 325-331

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Do events in the natural gas market cause repercussions in the crude oil market? This paper studies linkages between the two markets using high-frequency, intraday oil and gas futures prices. By analyzing the effect of weekly oil and gas inventory announcements on price volatility, we show a bidirectional causal relationship. Both inventory gluts and shortages have a cross-commodity effect on price volatility not only for the next-month nearby futures contract but also for the following six months' contracts.

Technical Details

RePEc Handle
repec:eee:eneeco:v:42:y:2014:i:c:p:325-331
Journal Field
Energy
Author Count
2
Added to Database
2026-01-25