Abstract
The author examines the efficiency implications of the regionalization hypothesis of Weiner (1991). Cointegration analysis is used to test this hypothesis. Both spot and contract prices for fifteen crude oils are used and separated into three groups of similar quality. Each group is intended to include crude oils that buyers can substitute for each other. Bivariate and multivariate versions of cointegration tests were used. The results suggest that the world oil market is unified and that prices for same quality crude oils from different regions of the world do not deviate from each other. 8 refs., 6 tabs.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
