Benchmark Prices and Iraqi Oil Prices: The Asymmetric Effects of Benchmark Prices on Three Iraqi Oil Blends
This paper examines the asymmetric effects of benchmark oil prices on the prices of the three major Iraqi oil blends (Basrah Light, Basrah Heavy and Kirkuk) using Kilian and Vigfusson's (2011) non-linear VAR specification. The empirical evidence reveals that a decrease in benchmark prices decr...
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| Format: | Article |
| Language: | English |
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EconJournals
2024-03-01
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| Series: | International Journal of Energy Economics and Policy |
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| Online Access: | https://www.econjournals.com/index.php/ijeep/article/view/15407 |
| _version_ | 1797260777694953472 |
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| author | Volkan Kahraman Nukhet Dogan Hakan Berument |
| author_facet | Volkan Kahraman Nukhet Dogan Hakan Berument |
| author_sort | Volkan Kahraman |
| collection | DOAJ |
| description |
This paper examines the asymmetric effects of benchmark oil prices on the prices of the three major Iraqi oil blends (Basrah Light, Basrah Heavy and Kirkuk) using Kilian and Vigfusson's (2011) non-linear VAR specification. The empirical evidence reveals that a decrease in benchmark prices decreases Basrah Light and Kirkuk oil blends more than an increase in the benchmark increases the prices of these two Iraqi blends for the October 2002-October 2019 period. However, the asymmetric behavior of Basrah Heavy is the reverse for the April 2015-October 2019 period. Moreover, as the magnitude of the benchmark oil price shocks increases, the degree of asymmetry increases. This shows that Iraq cannot benefit from oil price increases and market developments for its two most important export blends: Basrah Light and Kirkuk.
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| first_indexed | 2024-04-24T23:30:43Z |
| format | Article |
| id | doaj.art-cae72d6c7c844b2390bf045a3c0b5511 |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-04-24T23:30:43Z |
| publishDate | 2024-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-cae72d6c7c844b2390bf045a3c0b55112024-03-15T14:45:51ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532024-03-0114210.32479/ijeep.15407Benchmark Prices and Iraqi Oil Prices: The Asymmetric Effects of Benchmark Prices on Three Iraqi Oil BlendsVolkan Kahraman0Nukhet Dogan1Hakan Berument2Energy Economics, Policy, and Security, The Graduate School of Economics and Social Sciences, Bilkent University, 06800 Ankara, TürkiyeDepartment of Econometrics, Ankara Haci Bayram Veli University, 06420 Ankara, TürkiyeDepartment of Economics, Bilkent University, 06800 Ankara, Türkiye This paper examines the asymmetric effects of benchmark oil prices on the prices of the three major Iraqi oil blends (Basrah Light, Basrah Heavy and Kirkuk) using Kilian and Vigfusson's (2011) non-linear VAR specification. The empirical evidence reveals that a decrease in benchmark prices decreases Basrah Light and Kirkuk oil blends more than an increase in the benchmark increases the prices of these two Iraqi blends for the October 2002-October 2019 period. However, the asymmetric behavior of Basrah Heavy is the reverse for the April 2015-October 2019 period. Moreover, as the magnitude of the benchmark oil price shocks increases, the degree of asymmetry increases. This shows that Iraq cannot benefit from oil price increases and market developments for its two most important export blends: Basrah Light and Kirkuk. https://www.econjournals.com/index.php/ijeep/article/view/15407Crude Oil Prices, Benchmark Prices, Asymmetric Effects |
| spellingShingle | Volkan Kahraman Nukhet Dogan Hakan Berument Benchmark Prices and Iraqi Oil Prices: The Asymmetric Effects of Benchmark Prices on Three Iraqi Oil Blends International Journal of Energy Economics and Policy Crude Oil Prices, Benchmark Prices, Asymmetric Effects |
| title | Benchmark Prices and Iraqi Oil Prices: The Asymmetric Effects of Benchmark Prices on Three Iraqi Oil Blends |
| title_full | Benchmark Prices and Iraqi Oil Prices: The Asymmetric Effects of Benchmark Prices on Three Iraqi Oil Blends |
| title_fullStr | Benchmark Prices and Iraqi Oil Prices: The Asymmetric Effects of Benchmark Prices on Three Iraqi Oil Blends |
| title_full_unstemmed | Benchmark Prices and Iraqi Oil Prices: The Asymmetric Effects of Benchmark Prices on Three Iraqi Oil Blends |
| title_short | Benchmark Prices and Iraqi Oil Prices: The Asymmetric Effects of Benchmark Prices on Three Iraqi Oil Blends |
| title_sort | benchmark prices and iraqi oil prices the asymmetric effects of benchmark prices on three iraqi oil blends |
| topic | Crude Oil Prices, Benchmark Prices, Asymmetric Effects |
| url | https://www.econjournals.com/index.php/ijeep/article/view/15407 |
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