Coronavirus and oil price crash - Archive ouverte HAL Accéder directement au contenu
Pré-Publication, Document De Travail Année : 2020

Coronavirus and oil price crash

Résumé

Coronavirus (COVID-19) creates fear and uncertainty, hitting the global economy and amplifying the financial markets volatility. The oil price reaction to COVID-19 was gradually accommodated until March 09, 2020, when, 49 days after the release of the first coronavirus monitoring report by the World Health Organization (WHO), Saudi Arabia floods the market with oil. As a result, international prices drop with more than 20% in one single day. Against this background, the purpose of this paper is to investigate the impact of COVID-19 numbers on crude oil prices, while controlling for the impact of financial volatility and the United States (US) economic policy uncertainty. Our ARDL estimation shows that the COVID-19 daily reported cases of new infections have a marginal negative impact on the crude oil prices in the long run. Nevertheless, by amplifying the financial markets volatility, COVID-19 also has an indirect effect on the recent dynamics of crude oil prices.
Fichier principal
Vignette du fichier
WTI_COVID-19_manuscript.pdf (570.23 Ko) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

hal-02507184 , version 1 (12-03-2020)
hal-02507184 , version 2 (18-03-2020)

Identifiants

Citer

Claudiu Tiberiu Albulescu. Coronavirus and oil price crash. 2020. ⟨hal-02507184v1⟩
751 Consultations
1342 Téléchargements

Altmetric

Partager

Gmail Facebook X LinkedIn More