Heterogeneous noncompliance with OPEC's oil production cuts

Parnes, Dror

doi:10.1016/j.eneco.2018.11.023

Cited by 13 publications

(13 citation statements)

References 30 publications

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“…Secondly, the level of dependence on oil production as maintenance for macroeconomic performance among producers differs. Parnes (2019) analysed compliance among the OPEC, dividing them into three groups. The high and low complying countries exhibit relatively low compliance.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of International Reserves Among Organisation of Petroleum Exporting Countries (OPEC)

Bada

Adetiloye

Olokoyo

et al. 2022

CER

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Member countries of the Organisation of Petroleum Exporting Countries (OPEC) are always in the news regarding the prices and supply of crude oil to the international market. One of the economic reasons for this is liquidity and the desire to accumulate international reserves by the respective countries. This paper examined the determinants of international reserves among the cartel against the backdrop of the motives for keeping reserves. With data from 2005 to 2018, the adopted variables that were tested with the system of generalised methods of moments (Sy‑GMM) are inflation, exchange rates, oil prices, crude oil dependence, economic crises and others. The results and outputs show that inflation was negatively impactful externally and internally, while FDI inflows recorded negative significance. Economic crises and economic openness were positively significant, while oil prices and exchange rates were not significant determinants of international reserves accumulation. The paper recommends the maximisation of opportunities available by members during economic crises to accumulate reserves that will enable them to diversify from dependence on crude oil exports to include other products and a higher level of openness to open the economy up for competition to make the economies stronger.

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Section: Literature Reviewmentioning

confidence: 99%

Determinants of International Reserves Among Organisation of Petroleum Exporting Countries (OPEC)

Bada

Adetiloye

Olokoyo

et al. 2022

CER

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“…This shows that the power of integration is not always influenced by differences in GDP size. This is, of course, because rich countries do not necessarily have a large GDP size, as many of them have small population sizes like Brunei Darussalam, Qatar, and Kuwait (Parnes, 2019;Ratty and Vespignani, 2015).…”

Section: Real Convergent Criteriamentioning

confidence: 99%

Monetary Integration Among Oil Exporter Countries: Testing Kenen’s Product Diversification Hypothesis in the Organization of Islamic Cooperation

Agustiar

2020

IJEEP

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Kenen (1969) hypothesizes that countries that are largely dependent on one export commodity could experience weaker monetary integration and synchronize the business cycle among them. This paper aims to retest Kenen's hypothesis, which is applied to the seven largest oil-producing countries in the Islamic world. This study employs the optimum currency area index and the Pearson correlation matrix to determine the degree of integration and synchronization of the business cycle. This study empirically proves that most oil-producing countries are tightly integrated. Kenen's hypothesis is less applicable to oil-exporting countries, especially oil countries that have a strong economic structure and higher welfare. This study successfully explains the new empirical finding that homogeneity in the export structure is not bad for monetary integration.

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“…This is associated with the compliance with OPEC's administered quotas. As a mid-oil-producer, KUW displays much lower frequencies and magnitudes of noncompliance with OPEC's oil production cut [45]. In 2002, affected by the crude oil market environment, OPEC made a large adjustment to oil production quotas, which caused KUW oil production to fluctuate, thereby expanding its correlation with oil return risks.…”

Section: Correlation Analysis In Oil Producers' or Countries' Demandmentioning

confidence: 99%

The Heterogeneous Interconnections between Supply or Demand Side and Oil Risks

Liao

et al. 2019

Energies

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Due to the crucial implication of oil risks for economic growth and policy making, the aim of this paper is to explore the heterogeneous interconnections of supply or demand in oil risks over time horizons and different countries. Specifically, we first examine the correlation of supply or demand in oil return risks and show the relationships in different countries based on wavelet coherence. Furthermore, we explore the time-varying interconnections between supply- or demand-side and oil return risks, as well as oil producers and demand countries. The empirical results show that the correlation between supply and oil return risks is relatively stable, whereas the linkage between demand and oil return risks shows greater volatility due to the impact of specific events. Further study indicates that there are heterogeneous interconnections between supply- or demand-side and oil return risks over sample periods. Specifically, the sign of response could be divided into four phases, i.e., 1997–2002, 2002–2010, 2010–2013 and 2014–2018. In addition, the interconnections of the demand side could be divided into three phases due to the sign of it. What is more, the dynamic interconnections of oil producers’ or countries’ demands behave quite heterogeneously in different countries. Thus policymakers should focus on the coordination level and space capacity in the global crude oil market.

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Heterogeneous noncompliance with OPEC's oil production cuts

Cited by 13 publications

References 30 publications

Determinants of International Reserves Among Organisation of Petroleum Exporting Countries (OPEC)

Determinants of International Reserves Among Organisation of Petroleum Exporting Countries (OPEC)

Monetary Integration Among Oil Exporter Countries: Testing Kenen’s Product Diversification Hypothesis in the Organization of Islamic Cooperation

The Heterogeneous Interconnections between Supply or Demand Side and Oil Risks

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