The impact of refinery and oil demand shocks on the motor fuel market in Sweden

Karimu, Amin and Salia, Samuel and Hussain, Javed G. (2021) The impact of refinery and oil demand shocks on the motor fuel market in Sweden. International Journal of Finance and Economics. ISSN 1076-9307

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Abstract

This paper examines the link between the oil market and the motor fuel market in Sweden by developing a joint oil and motor fuel market in a structural VAR model. We explore the dynamic relationship between the oil market and motor fuel market (both gasoline and diesel) by focusing on the effects of oil demand and refinery shocks on motor fuel price and consumption. The results reveal opposite responses of gasoline and diesel consumption to positive oil demand shocks. Moreover, motor fuel price response to both oil demand and refinery shocks is greater than that of motor fuel consumption shocks. We also assess the immediate and long-run contributions of each of the shocks to the total variation of motor fuel price and consumption in the Swedish motor fuel market.

Item Type:	Article
Identification Number:	https://doi.org/10.1002/ijfe.1995
Dates:	Date Event 28 June 2020 Accepted 21 August 2021 Published Online
Uncontrolled Keywords:	Motor fuel, Oil demand Shock, Refinery Shock, Recursive, Sweden
Subjects:	CAH17 - business and management > CAH17-01 - business and management > CAH17-01-07 - finance CAH17 - business and management > CAH17-01 - business and management > CAH17-01-08 - accounting
Divisions:	Faculty of Business, Law and Social Sciences > Birmingham City Business School
Depositing User:	Javed Hussain
Date Deposited:	29 Jun 2020 15:18
Last Modified:	22 Mar 2023 11:48
URI:	https://www.open-access.bcu.ac.uk/id/eprint/8921

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