Location of Repository

Onto Exchange Rate's Short Run Impact on Oil Prices Dynamics: An OPEC Members' perspective

By Sadek Melhem and Michel Terraza

Abstract

In this paper, we study the oil price formation for the purpose of understanding price reactions of OPEC member countries to changes in the exchange rate of the US dollar and prices of other members in the short run. The results suggested that there is a partial impact of exchange rates volatility on oil prices dynamics in short runs. Moreover, the study demonstrated that Saudi Arabia behaves as a leader in the OPEC structure market while it behaves differently when linked to other reference markets. Generally, Saudi Arabia behaves more potentially and more moderately than the other OPEC members in responding to change of references markets prices.oil prices, exchange rates pass through, OPEC countries

OAI identifier:
Provided by: Research Papers in Economics
Downloaded from http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I2-P108.pdf

Suggested articles

Preview

Citations

  1. (2005). A stylized exchange rate pass-through model of crude oil price”, OPEC Review.
  2. (2002). An analysis of the factors affecting price volatility of the US oil market”,
  3. (1989). Exchange rate pass-through in the 1980s: the case of US imports of manufactures”,
  4. (1991). Exchange rates and foreign direct investments, board of governors of the Federal Reserve System”, International finance, Working paper N.
  5. (1996). How wide is the border?”
  6. (2003). Implication of the weaker dollar”,
  7. (1993). International Comparisons of pricing to market behavior”,
  8. (2003). Les mécanismes de formation des prix du pétrole, L’energie en France“, 18 annales des mines.
  9. (2006). Oil and energy price volatility”,
  10. (1986). OPEC and the dollar dilemma”,
  11. (2004). The empirical role of the exchange rate on the crude oil price formation”,
  12. (2008). The oil price and the dollar Reconsidered”, Commodity Modeling and Pricing: Methods for analyzing Resource Market Behavior.
  13. (2007). The oil price currency question”, International Herald Tribune.

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.