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Using a structural vector autoregression (SVAR) model, we demonstrate that the response of consumer prices in oil-producing Canadian provinces to oil market shocks is similar to that of consumer prices in non-oil-producing provinces, though the magnitudes and durations vary. In particular, the effects of oil supply and oil-specific demand shocks lead to significant consumer price increases while unanticipated expansions in global demand only lead to modest increases in consumer prices across both sets of provinces. Our results suggest that oil market shocks are transmitted from consumer prices in oil-producing provinces to non-oil-producing ones largely through changes in the labor market. Further, we find that roughly 41% of the long-run variation in consumer price inflation in oil-producing provinces is attributable to oil market shocks while it is about 46% in non-oil-producing provinces on average. Finally, we show that historically, oil market shocks have contributed to fluctuations in consumer price inflation in each province with different signs at different points in time. Consequently, our results suggest that policymakers should pay close attention to the effects of oil market shocks on subnational consumer prices in order to curb the impacts of adverse supply shocks and to mediate demand-side forces. [ABSTRACT FROM AUTHOR]

A model for determining the oil market transferability turmoil on the financial markets of the Iranian economy using the dynamic systems approach. At first, data related to oil, gold, stock exchange and foreign exchange were extracted from statistics related to the World Bank, Central Bank and Statistics Center of Iran and were analyzed with statistical analysis and simulation software. Then the research model was constructed using simulation methods and system analysis and the results were analyzed. The oil market in supply and demand for price determination is based on global systemic behavior. this simulation has used the factors affecting oil supply, oil demand, the expectations that shape this supply and demand, as well as macro factors such as macroeconomic indicators of the US economy, sanctions on the oil sector in Iran, the rate of world industry development and the available knowledge on oil substitution. Hidden mechanisms are the main reason for some oil price behaviors. The results of the research have led to the forecast of oil prices in the baseline scenario until 2025. The presence of political problems due to the interconnectedness of parallel markets in Iran causes widespread fluctuations in the currency and gold sectors in the Iranian economy. [ABSTRACT FROM AUTHOR]

This study seeks to investigate the extreme risk spillovers from crude oil to four major Asian stock markets from a market sentiment perspective. A copula-CoVaR (Conditional Value-at-Risk) approach is adopted to construct a dynamic network to capture the contributions of different types of market sentiment to the evolution of oil-stock risk nexus. The empirical evidence shows the presence of significant risk spillover effects from crude oil to equity markets. The dynamics of the oil-to-stock risk spillovers is shown to be significantly driven by market sentiments, mainly market fears in both stock markets and crude oil market triggered by prominent systemic events. As an extreme event unfolds, the oil-to-stock risk spillover dynamics is increasing susceptible to escalating market fears. [ABSTRACT FROM AUTHOR]

The oil market is one of the most important markets for the global economy. Often, oil prices influence the financial results of whole countries and sectors. Therefore, the modeling and prediction of crude oil prices are of high importance. Most up-to-date publications have used daily closing rates in crude oil price modeling, not considering the variability in prices during the day. The application of this kind of price representation leads to a loss of information about the range of price changes during the day, which influences the accuracy of the models and makes them useless in short-term course predictions. In this paper, we introduce the concept of a new state model in a binary-temporal representation, which uses trend analysis, which is one of the main methods used in the prediction of the direction of future changes in the course trajectory. The model described in this paper stands as the first tool that allows for predicting course changes in a given range. The presented work also summarizes the research results of modeling crude oil prices from the last six years, which prove the effectiveness of the mentioned modeling method. [ABSTRACT FROM AUTHOR]

The relevance of studying the role of the USA in supporting energy security in Europe was due to the escalation of geopolitical risks and the need for the transformation of energy systems in European countries in the context of Rus- sian aggression. The purpose of the study was to analyse the efforts of the USA to strengthen Europe’s energy resilience through the diversification of energy supply sources and the expansion of alternative energy supply routes. The study involved the analysis of regulatory acts, statistical analysis of energy trade data, and a structural-functional analysis of the energy security of the European Union as an integrated system. The main results of the study demonstrated that the Unit- ed States of America plays a decisive role in ensuring the energy security of European countries by significantly increasing the export of crude oil and liquefied natural gas to European markets, as well as providing significant political and diplo- matic support to efforts aimed at diversifying energy supply sources. Analysis shows that American energy supplies have significantly contributed to reducing the dependence of European countries on traditional suppliers, particularly Russia. Despite significant achievements in the process of replacing Russian-origin energy carriers with alternative supplies from the United States, there are certain challenges and obstacles that require further resolution. Among them, it is worth not- ing the relatively higher cost of American energy resources, the insufficient level of development of the corresponding in- frastructure for receiving, storing, and distributing imported energy carriers in some European Union member states, and the potential decrease in the need for fossil fuel imports in the long term due to the active transition to renewable energy sources and the implementation of ambitious climate goals. The study also revealed the need to align the energy policies of the United States of America and the European Union, considering the long-term goals of decarbonising the economy and sustainable development. The practical significance of the study lies in the development of recommendations for further strengthening the transatlantic energy partnership, taking into account the need to balance energy security and economic decarbonisation goals

This paper analyzes the returns and volatility connectedness between oil prices and Eurozone sector returns during the global financial crisis. We employ the TVP-VAR frequency connectedness approach with daily data of Brent prices and 18 Eurozone supersector indices from 15 November 2014 to 24 November 2023. Our results show a high average connectedness of the returns and volatilities. Industrial Goods are the largest transmitter contrariwise Media supersector is the largest receiver of shocks on returns. The same finding is for volatility, the result shows that Industrial Goods and Services transmit the highest risk in contrast, the Media has the highest receiver volatility indices. The time-varying connectedness (TCI) of returns and volatilities in both show a drastic increase in March 2020. This increase is a result of COVID-19. Whereas, there has been no rise in connectivity following Russia’s invasion of Ukraine. Our result highlighted that Brent was a net receiver of volatility shocks during the Russian invasion of Ukraine.

This paper analyzes the returns and volatility connectedness between oil prices and Eurozone sector returns during the global financial crisis. We employ the TVP-VAR frequency connectedness approach with daily data of Brent prices and 18 Eurozone supersector indices from 15 November 2014 to 24 November 2023. Our results show a high average connectedness of the returns and volatilities. Industrial Goods are the largest transmitter contrariwise Media supersector is the largest receiver of shocks on returns. The same finding is for volatility, the result shows that Industrial Goods and Services transmit the highest risk in contrast, the Media has the highest receiver volatility indices. The timevarying connectedness (TCI) of returns and volatilities in both show a drastic increase in March 2020. This increase is a result of COVID-19. Whereas, there has been no rise in connectivity following Russia's invasion of Ukraine. Our result highlighted that Brent was a net receiver of volatility shocks during the Russian invasion of Ukraine. [ABSTRACT FROM AUTHOR]

In the context of the debate on cryptocurrencies as the 'digital gold', this study explores the nexus between the Bitcoin and US oil returns by employing a rich set of parametric and non-parametric approaches. We examine the dependence structure of the US oil market and Bitcoin through Clayton copulas, normal copulas, and Gumbel copulas. Copulas help us to test the volatility of these dependence structures through left-tailed, right-tailed or normal distributions. We collected daily data from 5 February 2014 to 24 January 2019 on Bitcoin prices and oil prices. The data on bitcoin prices were extracted from coinmarketcap.com. The US oil prices were collected from the Federal Reserve Economic Data source. Maximum pseudo-likelihood estimation was applied to the dataset and showed that the US oil returns and Bitcoin are highly vulnerable to tail risks. The multiplier bootstrap-based goodness-of-fit test as well as Kendal plots also suggest left-tail dependence, and this adds to the robustness of the results. The stationary bootstrap test for the partial cross-quantilogram indicates which quantile in the left tail has a statistically significant relationship between Bitcoin and US oil returns. The study has crucial implications in terms of portfolio diversification using cryptocurrencies and oil-based hedging instruments. [ABSTRACT FROM AUTHOR]

The oil market is one of the most important markets for the global economy. Often, oil prices influence the financial results of whole countries and sectors. Therefore, the modeling and prediction of crude oil prices are of high importance. Most up-to-date publications have used daily closing rates in crude oil price modeling, not considering the variability in prices during the day. The application of this kind of price representation leads to a loss of information about the range of price changes during the day, which influences the accuracy of the models and makes them useless in short-term course predictions. In this paper, we introduce the concept of a new state model in a binary-temporal representation, which uses trend analysis, which is one of the main methods used in the prediction of the direction of future changes in the course trajectory. The model described in this paper stands as the first tool that allows for predicting course changes in a given range. The presented work also summarizes the research results of modeling crude oil prices from the last six years, which prove the effectiveness of the mentioned modeling method.

Volatility spillover informs whether the information in one market impacts the information in another. This paper examines whether oil market volatility spills over to the equity markets of selected SAARC countries. The study uses data from February 2013 to September 2019 to obtain updated evidence about the transmission of global oil price volatility to the equity markets of the SAARC member countries. The bivariate EGARCH model is used to test for volatility transmission from the oil market to the stock market. It is found that oil price shocks do not significantly impact equity market volatility, except in Bangladesh. Policymakers can use these findings when making policy decisions.

This paper investigates the dynamic relationship between the oil market and European stock market returns using monthly data from May 2007 to April 2022 for 27 European Union member countries. A novel approach is adopted by using the time-varying Granger causality test and the structural vector auto-regression model to examine the causal links. Empirical results reveal strong evidence of time-varying causation between the variables, considering the oil market from both the supply-side and demand-side perspectives. In light of these findings, numerous policy considerations emerge, including refining risk management strategies for investors, reformulating economic and energy policies, the potential impact on monetary policy decisions, the need for ad hoc market regulations, facilitating investor education initiatives, promoting international cooperation, and advancing the transition to sustainable energy sources. [ABSTRACT FROM AUTHOR]

When quantifying the importance of supply and demand for oil price fluctuations, a wide range of estimates have been reported. Models identified via a sharp upper bound on the short‐run price elasticity of supply find supply shocks to be minor drivers. In turn, when replacing the upper bound with a weakly informative prior, supply shocks turn out to be substantially more important. In this paper, I revisit the evidence in a model that combines weakly informative priors with identification by non‐Gaussianity. For this purpose, a SVAR is developed where the unknown distributions of the structural shocks are modeled nonparametrically. The empirical findings suggest that once identification by non‐Gaussianity is incorporated into the model, posterior mass of the short‐run oil supply elasticity shifts toward zero and oil supply shocks become minor drivers of oil prices. In terms of contributions to the forecast error variance of oil prices, the model arrives at median estimates of just 6% over a 16‐month horizon. [ABSTRACT FROM AUTHOR]

This paper distinguishes whether the shocks of various uncertainties on oil-stock correlation are alike from a time-frequency perspective. Specifically, using data from December 1997 to April 2021, the effects of EPU, VIX, and GPR on the interaction between Brent oil prices and stock indices in the G7 and BRIC countries are examined. The results reveal that the influence of EPU, VIX, and GPR on the oil-stock co-movement is dependent upon investment horizons. In developed markets, the most influential uncertainty index is the VIX, followed by EPU and GPR. In emerging markets, the interactions between oil prices and stock indices in Brazil and India are more susceptible to the VIX, followed by GPR and EPU. For China, the co-movement relation is more sensitive to EPU. Moreover, better prediction power on the stock market is obtained by combining oil prices and EPU or VIX. Our findings provide a crucial reference for financial risk management. [ABSTRACT FROM AUTHOR]

This study investigates the effects of the crude oil implied volatility index (OVX) upon emerging market financial stress (EMFS). We resort to a quantile regression framework as this approach is a better alternative to disentangle the relationship under different market conditions. Besides, we also examine how EMFS responds to the lags and asymmetries in the OVX. The empirical results show significantly positive impacts of OVX upon EMFS. Further, the effects of OVX become more assertive in the upper quantiles of EMFS, implying higher sensitivity to OVX when stress levels are high. In terms of the lagged effects, the relationship is transient as the OVX coefficients become weaker with increasing lag sizes. We further find that only positive impulses in OVX can significantly predict EMFS. Lastly, we report evidence that the Credit market stress is a crucial driver of EMFS. [ABSTRACT FROM AUTHOR]

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We investigate the robust determinants of the West Texas Intermediate/Brent oil price differential by employing a time‐varying framework. To achieve this, a dynamic model averaging framework is used, considering monthly data over the period 1994:1–2021:3. Our results suggest that the convenience yield, the global economic activity index, and the government bond yields act as the main factors that exercise a persistent and significant impact, for the largest part of the study period, although at different magnitude. More importantly, though, we show that at different time periods there are additional factors that exercise a significant impact on the oil price differential, such as refining constraints, stock market volatility, trading volume, and geopolitical risk. Thus, unless a dynamic modeling framework is employed, the full spectrum of the related effects cannot be revealed. A series of tests confirm the robustness of our findings. Several policy implications of these results are also discussed. [ABSTRACT FROM AUTHOR]

This paper aims to perceive associations and statistical inferences of the largest world oil producers through the contributions and singularities of this market from 1993 to 2020. Based on OPEC indexes, it has been possible to identify the possible inferences and assistance of the ten largest oil producers in the world in more than two decades by using correlation regression and statistical analysis of variables. According to the research and the literature on the area, the oil market supports its discussions, mainly in its productive approaches. It is possible to identify this market as a solid link to geopolitical actions, distributing the possibilities through economic bias and socio-cultural and historical factors globally. Some critical statistical results for the discussion can be seen in the significance of variables such as Profitability of oil & Consumption of energy from fossil fuels (p = 0.784) or Production of Crude Oil and Gas & GPD (p = 0.502). The regression has also favored a level of significance for the research (R = 0.998), making continuity viable given the execution of new biases or perspectives, such as Quality of Life and Governance, from the perspective of this same market. [ABSTRACT FROM AUTHOR]

A major factor in the Iranian stock market is the risk-taking of the economy. The stock index falls when the economy is at higher risk, either by protests or the possibility of war. The present study was conducted to investigate the existence of fluctuations in the currency, stock, gold, and oil markets during the period 2017-2021 using the common t-test and the DCC-GARCH approach. The statistical population includes all companies listed in the Tehran Stock Exchange during the period 2017 to the end of 2021. The period was chosen due to significant fluctuations in exchange rates, coins, oil, and stocks. To achieve the purpose of the study, first, a descriptive study of coin price trends, exchange rates, and stock and oil indices in the Iranian economy was presented and then the conditional correlation between the returns of these assets was estimated using the dynamic DCC-GARCH conditional correlation method. Conditional correlation between currency and stock markets as well as coins and stock exchanges has increased significantly from a period of calm to a period of turmoil. These results are consistent with the results of the transfer test using t-test statistics. The results showed the existence of transitions between the markets and transitions between the foreign exchange and gold markets. The results also showed that the oil market, because it is the most important source of Iran's income, has a major impact on the gold, currency, and stock markets.

The article presents an overview of theoretical approaches to the study of the content and channels of financial contagion, the main methods and models of its quantitative analysis. The results of contemporary domestic and foreign studies devoted to the assessment of the intensity, direction and scale of contagion across countries and industries are discussed. We conclude that Russian researchers pay insufficient attention to this problem. In the practical part of the article, we test hypotheses about the transmission of contagion from the oil market to a number of Russian large companies belonging to different sectors of the economy. Sanctions and pandemic shocks are seen as external triggers for contagion. We use a large amount of oil and stock price data for a period that includes the 2014–2016 monetary and financial crisis and the 2020 pandemic crisis. To distinguish between periods of high and low market volatility, which is necessary to detect contagion, we calculate moving coefficients of variation for oil and stock prices. To identify cases of contagion, we employ the Forbes-Rigobon test, tests for coasymmetry and cocurtosis of distribution. The resulting estimates confirm numerous cases of contagion, with their number increasing as higher distribution moments are analysed. In addition, we conclude that during the 2014–2016 crisis, the Russian oil and gas industry showed the greatest vulnerability to contagion from the oil market. However, the pandemic shock changed the telecommunications sector turned out to be the most susceptible to contagion from the oil market in Russia. The banking sector in both crises showed a high degree of contagion from the oil market. At the same time, companies associated with ferrous and non-ferrous metallurgy, mining and processing of precious metals, as well as the chemical industry demonstrated the greatest resistance to financial contagion.

This study investigates the effect of financial stress (financial stress index; FSI) on oil market realized volatility using Markov-regime switching MIDAS models. The empirical results show that FSI can remarkably improve the forecast accuracy of the oil market. Moreover, FSI measured by the United States can obtain more useful information than that measured by the world. Our findings are robust and reliable via alternative evaluation methods from both statistical and economic aspects. [ABSTRACT FROM AUTHOR]

Global economic growth prospects are facing ups and downs, the rise of interest rates to contain inflation, especially after the lingering effects of the pandemic and supply chain disruptions, recession and geopolitical tensions are obstacles for the world economy. The research question is what are the reasons for the recent global economic recession and what challenges could have on business and markets? As a methodology of research, we focused on a literature review of the existing literature and data analysis. Various economic recessions could happen from time to time and several have happened throughout history affecting the financial levels of businesses and profits. The economy bases as well on the degree of production, services, goods, consumer confidence and market trends. So, the stability of companies and countries depend a lot on these things. The results show that advanced economies raise interest rates to combat inflation, financial conditions are tightening, especially for emerging market economies. In conclusion, with cautious policy action, new strategies of negotiations and joint multilateral efforts, the world could move towards stronger and more inclusive growth. Strengthening global cooperation remains the best way to improve economic prospects. Fostering emotional intelligence in business is important. Mainly it is better to avoid? Decrease or deal with inflation rates first then with the recession since inflation is one of the main indicators and drivers to and in a recession. [ABSTRACT FROM AUTHOR]

This paper examines the effects of the interaction between the oil market and measures of global liquidity on the Brazilian real against the US dollar, using an SVAR framework. The results show that approximately 15% of the variance of the real exchange rate is associated with oil-specific demand shocks in the long run. Supply and aggregate demand shocks are less important. The recovery of the Brazilian currency in the aftermath of the global financial crisis is more related to global liquidity than oil prices. Oil price changes affect the interest rate spread, which puts further pressure on the real exchange rate. Our results shed light on the impact of oil price shocks on the Brazilian economy by providing important insights into the foreign exchange policy in Brazil. [ABSTRACT FROM AUTHOR]

The variation of and the interrelation between different energy markets significantly affect the competitiveness of various energy technologies, therefore complicate the decision-making problem for a complex energy system consisting of multiple competing technologies, especially in a long-term time frame. The interrelations between these markets have not been accounted for in the existing energy system modelling efforts, leading to a distortion of understanding of the market impact on the technological choices and operations in the real world. This study investigates the strategic and operational decision-making problem for such an energy system characterized by three competing technologies from crude oil, natural gas, and coal. A stochastic programming model is constructed by incorporating multiple volatile energy prices interrelated with each other. Oil price is modelled by the mean-reverting Ornstein–Uhlenbeck process and serves as the exogenous variable in the ARIMAX models for natural gas and downstream plastic prices. The K-means clustering method is employed to extract a handful of distinctive patterns from a large number of simulated price projections to enhance the computing efficiency without losing retaining critical information and insights from the price co-movement. The model results suggest that the high volatility of the energy market weakens the possibility of selecting the corresponding technology. The oil-based route, for example, gradually loses its market share to the coal approach, attributed to a higher volatile oil market. The proposed method is applicable to other problems of the same kind with high-dimensional stochastic variables. [ABSTRACT FROM AUTHOR]

While we can say that there is a global market for crude oil, we cannot say the same for natural gas. There is a strand of literature that argues that, in the last decades, gas markets have become less regional and more global. We use wavelets to test this hypothesis and conclude otherwise: although the European and Japanese gas markets are significantly synchronized, they are much less than the oil markets, which we take as the benchmark. We also show that the North American gas market fluctuations are independent of the other gas markets. Finally, we show that the existing synchronization between gas markets almost vanishes once one filters out the effect of oil price variations, suggesting that it is the global oil market that connects the regional gas markets. [ABSTRACT FROM AUTHOR]

This study examines the relationship among the price variables in the Thailand stock market, the foreign exchange market, the international gold market, and the crude oil market. Specifically, the study investigates whether (1) there exists a long-run equilibrium among oil price, gold price, foreign exchange, and the stock market index in Thailand, and (2) there is any dynamic effect of each asset market on other asset markets. All asset price series have shown both upward and downward trends over the study period. All monthly series in four markets from January 2000 to December 2018 are nonstationary and are integrated of order one. Then, the Johansen cointegration test is employed. The normalized cointegrating coefficients are negative. Such empirical result reveals that a significant long-run relationship exists among price variables in all asset markets, so that each asset class acts as a hedge against each other. The Granger causality test shows that the causations run from the stock price to the foreign exchange rate and the international gold price to the foreign exchange rate. Other short-run relationships have no significant causal links.

The article analyzes the global oil market, determines what factors and conditions affect its transformation. The situation in the oil market is developing in such a way that the price is the main indicator in the transformation of the world oil market. The article focuses on global oil production and global oil consumption, which are dependent on the price environment. That is, the conjectural factor that is most well-known in the development of the oil market and is associated with changes in world production (supply), consumption (demand), which dictates price offers. At the same time, there are significant price fluctuations and caused by other factors that affect the transformation of the world oil market, such as: economic factors, geopolitical factors, as well as technological factors.The purpose of the article is to determine the transformational factors of the world oil market in the conditions of shock conditions that occurred in the conditions of price “collapses” in the market, leading to sharp and significant changes in the entire world economic system.Methodological tools of scientific articles are based on an integrated approach of analysis of the world oil market based on scientific research methods, which include methods of system approach, comparative analysis, synthesis, empirical research - systematization, economic and statistical groups, as well as historical-logical method.

• Key 2002–2022 events categorized as demand & supply shocks. • Spillover effects of oil-grain markets to shocks are explored via TVP-VAR-DY. • Corn is transmitter of spillovers to other markets. • Market spillovers intensify under demand, supply shocks. This study explores spillover effects between oil and grain markets in response to supply- and demand-side shocks using the TVP-VAR-DY approach. Spillover effects among markets are enhanced under both demand and supply shocks. Wheat consistently acts as the transmitter of shocks for both types of events. Furthermore, corn is transmitter of spillovers to other markets. In contrast, soybeans receive spillovers during supply-side shocks and transmit them during demand-side shocks. Oil initially transmits shocks to other markets during demand-side events, but transitions to a receiver role as demand diminishes and supply-side crises emerge. Measures should be taken to reduce market risks when major events occur. [ABSTRACT FROM AUTHOR]

This paper examines the price discovery of three international crude oil futures markets (WTI, Brent, INE) before and after the outbreak of the COVID-19 with the application of the information share and component share model. Our study shows that there is a structural break of the date of March 6, 2020, in each price series with Zivot and Andrew's unit root tests. Using Gregory and Hansen cointegration tests, cointegration relationships with the structural break in May 2020 are detected. According to results of Information Share (IS) and Component Share (CS) measures Brent futures price mainly plays a leading role in WTI and INE futures prices and occupies an absolutely dominant position all the time in the three crude oil futures markets systems. In the post-covid period, the price discovery efficiency of INE has been improved slightly but is still weak compared with other two markets. After the outbreak of COVID-19, the dominant position in price contribution in the relationship with INE has transferred from Brent to WTI. These findings offer practical implications for regulators and portfolio risk managers during the unprecedented uncertainty period provoked by the COVID-19 pandemic. [ABSTRACT FROM AUTHOR]

This article aims to substantiate the factors by which the oil industry influences the sustainable development of OPEC++-participating countries under conditions of uncertainty. The impact of the price parameters of the world oil market and the tools of its regulation on the sustainability of OPEC++-participating countries was assessed using panel regression analysis. The sustainable development level of OPEC++-participating countries was analyzed by the integrated estimation method, focusing on crude oil market functioning features. Undoubtedly, we can testify that there is a direct correlation between the country's level of socio-economic development and sustainable development. In resource economies, a reduction in oil production and exports cannot have the same effect on sustainable development as in countries that do not produce oil, or are characterized by a higher level of economic development. With an appropriate level of economic diversification and the effectiveness of the institutional framework for managing the oil market, sustainable development can be achieved. Based on the model of the integrated assessment of the sustainable development of oil-exporting countries, the impact of statistically significant financial investors' panic factor on the imbalance of oil prices due to the uncertainty of economic development was determined. Key indicators that create a panic factor in the oil market were identified. These include the indicators of the number of countries enforcing lockdown and the pandemic's duration. We argue for the need to develop an effective strategy for achieving the sustainable development goals (SDGs) in OPEC++-participating countries, based on the management of crude oil supply and demand forces and by considering the effect of financial investors' panic factor on the oil market. [ABSTRACT FROM AUTHOR]

This paper assesses the effects of investors' lottery-seeking behavior on expected returns in the Norwegian equity market, a relatively small equity market dominated by the energy industry. We use the MAX factor defined as maximum daily return over the previous month as the proxy of investors' preference for lottery-like stocks. Despite evidence from recent literature that MAX has a negative relationship with the expected returns in other developed European markets, we find that the relationship is generally insignificant in Norway; however, it becomes more nuanced when we control for the state of the oil market. The dominance of firms related to the oil industry, which have experienced tremendous growth over the last couple of decades, masks the effect to a large extent. Conditional regressions show that the MAX effect is only significant in the Norwegian stock market when the oil market is in the bearish state. [ABSTRACT FROM AUTHOR]

The global market for high-value fatty acids production, mainly omega-3/6, hydroxy fatty-acids, waxes and their derivatives, has seen strong development in the last decade. The reason for this growth was the increasing utilization of these lipids as significant ingredients for cosmetics, food and the oleochemical industries. The large demand for these compounds resulted in a greater scientific interest in research focused on alternative sources of oil production - among which microorganisms attracted the most attention. Microbial oil production offers the possibility to engineer the pathways and store lipids enriched with the desired fatty acids. Moreover, costly chemical steps are avoided and direct commercial use of these fatty acids is available. Among all microorganisms, the oleaginous yeasts have become the most promising hosts for lipid production - their efficient lipogenesis, ability to use various (often highly affordable) carbon sources, feasible large-scale cultivations and wide range of available genetic engineering tools turns them into powerful micro-factories. This review is an in-depth description of the recent developments in the engineering of the lipid biosynthetic pathway with oleaginous yeasts. The different classes of valuable lipid compounds with their derivatives are described and their importance for human health and industry is presented. The emphasis is also placed on the optimization of culture conditions in order to improve the yield and titer of these valuable compounds. Furthermore, the important economic aspects of the current microbial oil production are discussed. [ABSTRACT FROM AUTHOR]

The oil market is affected by the supply of oil by oil-producing countries. The Organization of the Petroleum Exporting Countries (OPEC) was established in the 1960s to balance oil prices in favor of oil-producing countries. OPEC has gone through a period of convergence and divergence since its inception under politicaleconomic events and crises. In turn, this convergence and divergence have had a significant impact on oil production, supply, and prices in the oil market. OPEC members form a diverse range of population, size, reserves, output, gross domestic product, ideology, and type of relationship with world powers. This diversity, along with internal tensions, leads to different approaches on energy markets and production quotas, which has affected the interests of all producing countries. Thus, this study aims to assess the convergence relationship between OPEC members on the strength of this organization on the market. To reach this aim, we have used a qualitative method of descriptive and analytical type using library resources and documents. Findings show that any lack of convergence and understanding between OPEC members has led to increased supply in the oil market and fluctuating prices. These price fluctuations seriously damage the economies of exporting countries. [ABSTRACT FROM AUTHOR]

In this study, we employ both the spillover index of Diebold and Yilmaz [1], and the wavelet coherence approaches to investigate the impacts of return spillovers and dynamic timefrequency linkages between crude oil prices and five developed stock markets in Europe (the United Kingdom, Spain, Italy, German, and France) in the pre and during Covid-19 outbreak periods. The results highlight that IBEX and CAC series are net recipients of risks, while the other assets are a net transmitter of shocks in the pre-Covid-19 period. In contrast to the results for the pre-Covid-19 period, LSE, CAC, and IBEX are the net recipients of return spillovers, reaching a maximum level of about 23% during the Covid-19 outbreak. Specifically, in comparison with the pre-Covid-19 period, the return transmission is more apparent during the Covid-19 crisis. More importantly, there exist significant dependent patterns about the information spillovers, and time-frequency linkages between crude oil and five major stock markets might provide urgent prominent implications for portfolio managers, investors, and government agencies.

Recently, the world oil market has been experiencing significant difficulties, which have led to global economic imbalances. These imbalances are closely related to market changes, when oil prices fall sharply, and world oil supply far exceeds world demand. However, this was not always the case. Back in the early 2000s, researchers predicted the achievement of a “peak in oil demand”, arguing that world oil production would soon reach its peak. Moreover, the constant rise in oil prices has led to the constant search for new fields and the transfer of wealth from importing countries to oil exporting countries. Such events formed a new stage in the development of the world oil market.In general, in the entire history of the development of commercial oil, the world oil market has undergone many changes, which determined its stages of development. This was the main purpose of this article - a phased analysis of the development of the world oil market, as well as a study of its characteristics, features and the transformational phenomena that have arisen. The constant geopolitical clashes between exporting countries and oil importing countries lead to significant diversification of the institutional structure of the oil market and the flexibility of functioning mechanisms. And technological progress, which entailed structural changes in energy consumption, is transforming the world towards the use of low-carbon energy sources and a worldwide reduction in oil consumption.

Traditional types of energy resources, among which oil is primary, have a huge influence on economic development in various manifestations. In our research, we discuss dependence of economic growth in oil-exporting countries on first-order factors, such as oil prices, oil production, and structural shift in a share of oil exports. To review 2005-2019, we chose leading oil-exporting nations, including the OPEC members (Iraq, Iran, Libya, Saudi Arabia, and Nigeria), as well as countries outside this group (Russia, Kazakhstan, Azerbaijan, and Norway). Having used statistical and regression techniques, we confirm that the correlation between oil price fluctuations and economic growth raises with the scale effect. Larger economies (by absolute GDP in oil-exporting nations and hydrocarbon production) might generate more intensive economic growth from positive changes in oil prices than small economies. Also, the OPEC members show the strongest structural shifts in the change of the share of oil exports than the other countries. Resulting regression dependences led us to the conclusion that in oil-exporting countries, economic growth largely depends on an increase in oil prices and changes in oil production rates. But contrary to the expectations saying that in time of downturns, as far as global oil prices fall, nations will reduce oil exports, we observe the reverse picture – changed role of the price factor. We explain this with the keeping income-balance strategy, where the oil price parameter is a tool to choose ideal production. Our findings show that with the 1%-increase in oil production, the countries under considerations (the OPEC members) might reach GDP from 0.0367% (Iraq) to 0.437% (Libya). For countries outside OPEC, such a GDP growth might be more intensive. For instance, in Russia, it might be up to 1.559%. This also points out that the joint coordinating policy in oil production affects the economic growth potential.