Crude oil price: Demand, supply, economic activity, economic policy uncertainty and wars: from the perspective of structural equation modelling (SEM)
We studied the relationship between the change in the price of oil and some of its determinants, using a structural equation model. The demand for oil is confirmed to be inelastic to the change in oil price during our sampling period. Economic activity is found to be the most significant factor in e...
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| Format: | Article |
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Elsevier
2017
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| Online Access: | https://eprints.nottingham.ac.uk/51999/ |
| _version_ | 1848798623335186432 |
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| author | Wang, Qingfeng Sun, Xu |
| author_facet | Wang, Qingfeng Sun, Xu |
| author_sort | Wang, Qingfeng |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We studied the relationship between the change in the price of oil and some of its determinants, using a structural equation model. The demand for oil is confirmed to be inelastic to the change in oil price during our sampling period. Economic activity is found to be the most significant factor in explaining the dynamics of oil price. Wars and political tension, among the largest oil producers and their neighbouring countries, can drive the crude oil price sharply higher, but no significant direct effect was confirmed by the SEM. The significant effects of wars and political tension on the price of oil lies in their ability to disrupt oil supplies. |
| first_indexed | 2025-11-14T20:22:43Z |
| format | Article |
| id | nottingham-51999 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:22:43Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-519992020-05-04T19:01:06Z https://eprints.nottingham.ac.uk/51999/ Crude oil price: Demand, supply, economic activity, economic policy uncertainty and wars: from the perspective of structural equation modelling (SEM) Wang, Qingfeng Sun, Xu We studied the relationship between the change in the price of oil and some of its determinants, using a structural equation model. The demand for oil is confirmed to be inelastic to the change in oil price during our sampling period. Economic activity is found to be the most significant factor in explaining the dynamics of oil price. Wars and political tension, among the largest oil producers and their neighbouring countries, can drive the crude oil price sharply higher, but no significant direct effect was confirmed by the SEM. The significant effects of wars and political tension on the price of oil lies in their ability to disrupt oil supplies. Elsevier 2017-08-15 Article PeerReviewed Wang, Qingfeng and Sun, Xu (2017) Crude oil price: Demand, supply, economic activity, economic policy uncertainty and wars: from the perspective of structural equation modelling (SEM). Energy, 133 . pp. 483-490. ISSN 0360-5442 Crude oil price; Wars; Economic policy uncertainty; Kilian economic index; Structural equation modelling https://www.sciencedirect.com/science/article/pii/S0360544217309192?via%3Dihub doi:10.1016/j.energy.2017.05.147 doi:10.1016/j.energy.2017.05.147 |
| spellingShingle | Crude oil price; Wars; Economic policy uncertainty; Kilian economic index; Structural equation modelling Wang, Qingfeng Sun, Xu Crude oil price: Demand, supply, economic activity, economic policy uncertainty and wars: from the perspective of structural equation modelling (SEM) |
| title | Crude oil price: Demand, supply, economic activity, economic policy uncertainty and wars: from the perspective of structural equation modelling (SEM) |
| title_full | Crude oil price: Demand, supply, economic activity, economic policy uncertainty and wars: from the perspective of structural equation modelling (SEM) |
| title_fullStr | Crude oil price: Demand, supply, economic activity, economic policy uncertainty and wars: from the perspective of structural equation modelling (SEM) |
| title_full_unstemmed | Crude oil price: Demand, supply, economic activity, economic policy uncertainty and wars: from the perspective of structural equation modelling (SEM) |
| title_short | Crude oil price: Demand, supply, economic activity, economic policy uncertainty and wars: from the perspective of structural equation modelling (SEM) |
| title_sort | crude oil price: demand, supply, economic activity, economic policy uncertainty and wars: from the perspective of structural equation modelling (sem) |
| topic | Crude oil price; Wars; Economic policy uncertainty; Kilian economic index; Structural equation modelling |
| url | https://eprints.nottingham.ac.uk/51999/ https://eprints.nottingham.ac.uk/51999/ https://eprints.nottingham.ac.uk/51999/ |