OPEC at 60: the world with and without OPEC

Economou, Andreas; Fattouh, Bassam

doi:10.1111/opec.12205

Cited by 3 publications

(1 citation statement)

References 44 publications

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“…However, they do not examine the impact of OPEC+ agreements during the pandemic, when production cutbacks by the OPEC+ members reached an unprecedented magnitude, nor do they report the impact of OPEC+ on price volatility. Economou and Fattouh (2021) also construct a counterfactual scenario, based on the assumption that all of OPEC's available capacity (including the buffer of spare capacity) had been put on the market during 1990-2018. Although OPEC+ was formed toward the end of this interval, the authors do not consider the potential impact of the Allies' additional spare production capacity on the counterfactual price.…”

Section: Literature Reviewmentioning

confidence: 99%

Oil Market Stabilization: The Performance of OPEC and Its Allies

Almutairi¹,

Pierru²,

Smith³

2023

The Energy Journal

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We examine the influence of OPEC+ on the level and volatility of oil prices. By extending Pierru et al.'s (2018Pierru et al.'s ( , 2020 modeling framework, we are able to distinguish OPEC's particular role and impact from that of its Allies-those countries who joined with OPEC at the end of 2016 in the attempt to stabilize the market. In addition to corroborating earlier results regarding the impact of OPEC's management of spare capacity prior to 2017, we now present an analysis of how the concerted actions by the larger community of OPEC+ members have affected prices, including during the tumultuous period in which the COVID-19 pandemic took hold. We find that OPEC+'s efforts to stabilize the market reduced price volatility by up to one half, both before and during the pandemic. We attribute most of that reduction to OPEC's own actions whereas the impact of the Allies' efforts was mostly to support the price level. In that vein, OPEC+'s management of spare capacity barely impacted the average price over the pre-pandemic period, but, by countering the price collapse caused by the pandemic demand shock, lifted the average price by $35.70 from May 2020 through August 2021.

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Section: Literature Reviewmentioning

confidence: 99%

Oil Market Stabilization: The Performance of OPEC and Its Allies

Almutairi¹,

Pierru²,

Smith³

2023

The Energy Journal

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Environmental and economic assessment of the efficiency of heat exchanger network retrofit options based on the experience of society and energy price records

Boldyryev

Gil

Ilchenko

2022

Energy

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Oil and Gas Markets and COVID-19: A Critical Rumination on Drivers, Triggers, and Volatility

Bandyopadhyay

2022

Energies

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The paper endeavours to explore and analyse some critical issues in the oil and gas market that cropped up around the spread of COVID-19 and tries to identify the key drivers and triggers pertaining therewith. The spread of the first wave that began in March 2020 is crucial because of the global economic downturn that ensued due to lockdown and imposed restrictions coupled with a protracted oil price war that began between Saudi Arabia and Russia. The paper tries to address some key research questions to understand the triggers and drivers around the pandemic. These are: (1) whether the behaviour of OPEC or its key players around the pandemic could be considered uniquely different; (2) what could the triggers be for the increased volatilities that cropped up in both physical and financial markets during the pandemic; (3) what was really different about the oil market crisis around the pandemic that transformed it to an unprecedented storage crisis; (4) what really went wrong with the much-hyped U.S. shale boom during the pandemic that led to the bankruptcy of several oil and gas companies, followed by huge job losses. The paper relies on a structured review of relevant secondary literature to address these exploratory questions and builds upon a retrospective rumination on the world oil market from 1960 to 2020. This is complemented by an analysis of supporting data and evidence obtained from various sources. Considering the intertwining of oil and financial markets around the pandemic, the lessons and findings from the paper would not only be highly relevant for policymakers and stakeholders in the oil and gas sector but would be equally relevant for those in the financial markets.

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OPEC at 60: the world with and without OPEC

Cited by 3 publications

References 44 publications

Oil Market Stabilization: The Performance of OPEC and Its Allies

Oil Market Stabilization: The Performance of OPEC and Its Allies

Environmental and economic assessment of the efficiency of heat exchanger network retrofit options based on the experience of society and energy price records

Oil and Gas Markets and COVID-19: A Critical Rumination on Drivers, Triggers, and Volatility

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