‘Crude oil price differentials, product heterogeneity and institutional arrangements’
October 31, 2014 Leave a comment
The CCP seminar series continues on Friday 31st October with a distinguished guest from Columbia, Jesús Otero (Universidad del Rosario), presenting his paper on ‘Crude oil price differentials, product heterogeneity and institutional arrangements‘. Jesús completed his PhD at the University of Warwick in 1998 and has been at Professor of Economics at Universidad del Rosario since 2003. An abstract for his paper can be found below.
We adopt time-series and cross-section methods to analyse long-term relationships between pairs of crude oil prices and assess how physical and institutional factors affect their speed of reaction to exogenous shocks. Using a methodological approach which does not require identifying specific crudes as benchmarks, we shows that the overwhelming majority of prices have stable long term relationships. We also find that crudes with physical similarity converge quickly after a shock, while prices for oil produced in OPEC countries are relatively slow to revert to equilibrium after a shock.
The seminar will take place from 13:00-14:00 in the Thomas Paine Study Centre, Room 1.03.