Prices Of Oil Products Research Articles

Do fluctuations in global crude oil prices have an asymmetric effect on oil product pricing in India?

Do fluctuations in global crude oil prices have an asymmetric effect on oil product pricing in India?

The impact of public procurement on market competition: evidence from South Korea

ABSTRACT This study explores the effects of public procurement on market competition. We examined the gasoline and diesel price impacts of the joint oil purchase policy implemented by the Korean Public Procurement Service in the public sector, as an example of public procurement. Using administrative data from all retail gas stations, we found that the policy increased the retail price of oil products at public procurement contract gas stations, indicating that public procurement can have negative effects on market competition.

The Past and the Future Effects of Russian-Ukrainian Conflict on the Democratic Republic of Congo Economic Policy

The aim of this research was to investigate the past and the future effects of the Russo-Ukrainian war on the DRC (Democratic Republic of Congo) economy policy. The forecast method based on the UCL: Upper control limit, LCL: Lower Control Limit was used. The data have been collected from various reports of the central bank and Economics Ministry and it concerned the series times collected from 2018-2022. The forecast made in this study concerned the 5-year period from 2023-2027. The results showed that the impact of this war on the various sectors of the Congolese economy was especially positive and negative to macroeconomics various indicators in DRC. After using the SPSS forecasting on 9 variables, 4 variables increased due to the war. Positive effects on the credit economic, will rise from 4.53 initially to 9.42 in 2027, the Bank deposit will also rise from 8.13% in 2022 to 9.97%. Exports from the DRC will increase by 38.06% versus 31.36% initially. On the other hand, 5 variables showed negative effects induced by the Russo-Ukrainian war in DRC. The inflation rate will rise to 80.8% in 2027 from 12.62% initially. Also, the exchange rate, a headache for the current Sama Lukonde government, will reach the overheated level of 3472CDF to the US dollar, compared with the original rate of 2000. The DRC's imports will grow by 44.05% in 2027, reinforcing its dependence on specific foreign products, including machinery and other equipment, and foreign currency oil product prices, which will rise by an average of 12.12% across the country. The innovative aspect of this research was the integration of the behaviors or predilections made on the various macroeconomic variables of the DRC in a 5-year time frame due to the conflict between Russia and Ukraine. Changes in eating habits by adopting consumers' tastes or households to local products that are perfect substitutes for Russian or Ukrainian imports, and monetary policy were envisaged in the paper. In the longer term, the energy transition is no longer an option but a necessity, as the country has the necessary potential in this field. Nevertheless, it remains a perilous path in the sense that it requires fairly substantial capital.

Structural sources of oil market volatility and correlation dynamics

This paper explores the structural driving sources of oil market volatility and correlation dynamics using our derived volatility impulse response and correlation decomposition functions. A focal point of this paper is to conduct hypothesis tests for the observed diverging dynamics of oil market volatilities (a steady decline in oil production volatility and a concurrent increase in oil price volatility). In order to circumvent the restriction of uncorrelated disturbances in traditional structural models with stochastic volatility, we specify a time-varying level-volatility transmission matrix that allows for time-varying correlations between level and volatility innovations. Our model generalization hence captures transmissions of unexpected changes in oil levels to oil volatilities, and proves more adequate than traditional models for estimating oil market dynamics. Our results reveal several new useful insights for policy-makers, firms and investors. First, we find that a decrease in oil price persistence is at the origin of the diverging pattern of oil volatilities. Second, decreased variability of flow supply shocks is responsible for about 32% of the reduction in oil production volatility, while increased variability of demand-side shocks explains almost 60% of the increase in oil price volatility. Lastly, we find a near-zero correlation between oil production and oil price since the mid-1980s – a result that supports the theoretical prediction that oil production is inelastic to oil price changes.

Analyzing pure contagion between crude oil and agricultural futures markets

Crude oil and agricultural product prices are important factors affecting a country's economic and social stability. The pure contagion between these two markets may lead to excessive price linkage, increasing the fragility of the financial system. This paper uses the CEEMDAN method, fine-to-coarse reconstruction method, and TVP-VAR model to study the pure contagion between crude oil and agricultural futures markets. The empirical results show that there always is significant pure contagion between agricultural futures markets. However, pure contagion between crude oil and agricultural futures markets only exists in some specific periods. The crude oil futures market has obvious pure contagion to the agricultural futures markets in most periods. Only a few periods the agricultural futures have pure contagion to the crude oil futures. It is worth noting that the COVID-19 epidemic aggravates the pure contagion between crude oil and the agricultural futures markets. Based on the research conclusions, this paper puts forward corresponding policy recommendations, hoping to provide a reference and theoretical basis for the government to formulate corresponding policies.

Feasibility Study on the Financing of Oil Trade Warehouse Receipts in China (Zhejiang) Pilot Free Trade Zone Based on Digital Supervision

Oil products are important commodities related to the national economy and the people's livelihood. The order of oil products market is related to the safety of people's lives and property and the stability of the entire market economic order. After the gradual opening of the domestic oil market, private oil enterprises have gradually become a main force to maintain the stability of the oil market and promote the circulation of oil products. With the increasingly fierce competition in the industry, the price of oil products has risen too fast, and private oil companies are facing capital problems and are difficult to conduct business. Warehouse receipt financing business is proposed as a solution to the problem timely. This paper combines the hardware and software facilities of the oil industry chain in the China (Zhejiang) Pilot Free Trade Zone, using the oil storage supervision system and blockchain technology, together with oil enterprises, warehousing enterprises, trading platforms and banks, to build the oil warehouse receipt financing system. It is proved that the financing of oil warehouse receipts in the China (Zhejiang) Pilot Free Trade Zone can avoid most risks and form a win-win situation.

Uloga i značaj logistike u diverzifikaciji rizika uvozne zavisnosti Republike Srbije od nafte i naftnih derivata

After the outbreak of the conflict in Ukraine in early 2022, a series of events followed that influenced the change of the international order and the entire geopolitical scene. There has been an economic regrouping and redefinition of interstate relations, and in some countries there has been a deterioration or breakin of relations, and in others there has been a deepening and strengthening of cooperation. Bearing in mind that some are leaders in the export of oil and petroleum products, and some are the biggest importers of the same, the international market of these energy products has changed. This is also indicated by the prices of oil and petroleum products on the international market, as a clear indicator of the changed conditions on the supply and demand side. Securitization of the supply of oil and petroleum products, as well as the prevention of negative-inflationary consequences of price shocks of these energies to internal economic flows implies a strategic approach in supply chain management and logistics. Successfully coping with such challenges implies a multifaceted and synchronized approach by the state or competent entities. First of all, states or entities representing them may sign long-term arrangements on the supply of oil and petroleum products, which cannot be considered an absolute solution in the long term, given the general geopolitical circumstances, but also the practice in bilateral cooperation. Then, states can start the production of oil and petroleum products from conventional-commercial sources, if there are financial and objective-technical conditions for this. The third, and no less important approach, is to create conditions for the exploitation of renewable energy sources, which can help users meet their energy needs. This would reduce the demand for other energy sources, so if the country is imported dependent on fossil fuels, the need for imports would also reduce the import dependence of the country. All three approaches are in the function of diversifying the risk of fuel imports, and if this sphere is not given attention, all economic flows of any oil and petroleum products importing country can be drastically disrupted. There are many examples of mistakes made in the procurement strategy of oil and petroleum products, i.e. gas in the foreground. This paper covers the most interesting examples from practice in order to project the risks and damages that imported countries dependent on oil and petroleum products have faced due to the latest developments in Ukraine. In this paper, the authors also point out the economic aspects that reflect possible directions of diversification of risks from the import of oil and petroleum products, as well as the connection of diversification of import risk with supply and logistics in the Republic of Serbia.

Application of Achimov deposits in the oil industry as a way of competitiveness increasing of Russia’s raw materials exports

The relevance of this study lies in the fact that the modern oil market is characterized by instability and high competition. Depletion of oil fields, deterioration of oil production equipment, price instability and political conflicts negatively affect Russia's position in the global energy market. The new economic conditions of 2021 are associated with a decrease in demand for oil and its products, high import dependence, conservation of wells to fulfil the OPEC++ deal, which will lead to a 3-10% drop in the market. It is necessary to apply new methods of oil production, one of which is the modern technology of Achimov oil fields development. The source materials were statistical data from the Center for Macroeconomic Analysis and Short-term Forecasting, the Ministry of Economic Development of Russia, the Analytical Center under the Government of the Russian Federation, world rating reports. The pandemic and self-isolation of 2020 led to the fact that the Russian oil sector lost 50-60% of revenue from hydrocarbon exports, more than 50% of its capitalization. The following fact is relevant for Russian oil companies: search for new markets (for example, Asia); application of innovative technologies to maintain the profitability of oil and gas production through the development of Achimovka oil deposits; development of small deposits and deposits with hard-to-recover reserves.

The Impact of Redistillation Temperature using Rotary Vacuum Evaporator on the Quality of Aceh Patchouli Oil

Patchouli oil is one of the most important essential oil commodities in Indonesia. At present the Special Region of Aceh, especially Aceh Jaya, Gayo, West Aceh, South and Southeast Aceh, is still the largest patchouli plant centre in Indonesia. So that many Aceh patchouli artisans sell their patchouli products to industries. However, there are several obstacles in this industry that cause the prices of patchouli oil products to become unstable and reduce the competitiveness of the national patchouli oil industry. One innovation that can be done to improve competitiveness is to make isolate products from patchouli oil which has a high selling value, namely patchouli alcohol (PA). PA isolation from patchouli oil can be done by a combination of vacuum distillation. In this study begins with a vacuum distillation process of patchouli oil. Patchouli oil used is taken from sources refined by Aceh farmers. Variable is refining temperature. The distillation temperature is set at 120, 125, 130, 135, 145, 155, 165, and 175 oC. Patchouli oil was analysed with patchouli alcohol, specific gravity, refractive index and acid number. The results showed that the value of patchouli oil refractive index increased from 1.507 to 1.512; density increased to 1.005 g/ml; acid number increased slightly from 5.5 to 5.8; and patchouli alcohol increased from 34% to 65.9%.

Impact of EU carbon border adjustment mechanism on the economic efficiency of russian oil refining

The carbon border adjustment mechanism (CBAM) leads not only to the expected environmental changes, but also to the transformation of market environment. The study estimates the losses of the oil refining sector from the introduction of CBAM for the export of oil products from Russia to the countries of the European Union. An approach to assess the impact of CBAM on the cost of oil products has been formed and the mechanisms of its impact on the economy of Russian oil refineries have been identified. The study was carried out on the basis of actual data on the volume of greenhouse gas emissions in accordance with the current rules of the European emissions trading system. Decomposition of assessments of the CBAM impact was carried out into direct and indirect effects, as well as the effect of adaptation. It is shown that with the introduction of the CBAM mechanism, the prices of oil products in the domestic market will be determined not only by the logistical factor, but also by the requirements for environmental friendliness of oil refining. The introduction of CBAM will have a significant impact on the economics of oil refining, including refineries that do not export to the EU. The total impact of CBAM on the economy of Russian oil refineries will be about 250 mln dollars.

THE PECULARITIES OF THE COMPETITIVENESS OF THE TOURISM SECTOR OF THE REPUBLIC OF MOLDOVA

In the current economic conditions, tourism specialists are of the opinion that tourism is one of the sectors with the highest potential to provide economic growth and development at the national and international level. A growing tourism sector can effectively contribute to employment, increase national income and also make a decisive impact on the balance of payments. Thus, tourism can be an important engine of economic growth and prosperity, especially in countries with economies in transition, being a key element in reducing poverty and regional disparities. Despite its contribution to economic growth, the development of the tourism sector can be hampered by a series of economic and legislative obstacles that can affect the competitiveness of this sector. The tourism sector in the Republic of Moldova has faced a lot of obstacles, currently going through the most difficult period in its recent history. Starting from 2020, international and national tourism was faced with serious problems generated by the COVID-19 pandemic, followed by the economic crisis, the increase in the prices of oil products, as well as climate change, etc. But, not looking for these aspects of shock, the sector continues its activity and is currently experiencing a gradual recovery and gratifying results. In this context, the World Economic Forum proposes, through the Travel and Tourism Development Index, in addition to a methodology for identifying the key factors that contribute to increasing the competitiveness of tourism, and tools for analyzing and evaluating these factors. Through this indicator, it can be used in the analysis of the degree of competitiveness of the sector in relation to other countries. In this context, this paper aims to analyze the determinants that are the basis of the Travel and Tourism Development Index, in order to highlight the effects of communication on competitiveness in the tourism sector. The purpose of this analysis is to provide some answers, which can explain the performances but also the particularities of the tourism sector in the Republic of Moldova that could help in the development of strategies for the development of this sector.

Current status of research on the synthesis of hydrogen, hydrocarbons and conversion of carbon dioxide in the framework of reducing anthropogenic pressure on the environment and switching to environmentally friendly energy sources

The world’s energy sector faces two major challenges: one is the rapid rise in the price of oil products, and the other is the increase in the amount of carbon dioxide emitted by industry into the atmosphere, leading to global warming. Developments in alternative energy sources, such as solar and hydrogen energy, are becoming increasingly relevant. In this regard, there has been a lot of interest in converting CO2 into useful products. Hydrogenation of carbon dioxide into useful energy resources and chemicals is becoming increasingly important as it is seen as a promising way to reclaim harmful CO2 as a by-product. The article considers modern technologies of hydrogen production and industrial conversion of carbon dioxide into useful products, and also describes the author’s natural method of catalytic conversion of carbon dioxide into useful green energy resources – hydrogen and hydrocarbons.

The Extended Producer Responsibility for Waste Oils

Currently, lubricants producers, electrical, electronic producers, and cars producers share waste oil management responsibility. The extended producer responsibility (EPR) regime for WEEE was updated to incorporate the mandate of using economic incentives correctly regarding applying the hierarchy principle in WEEE management. Moreover, EPR on end on life vehicles (ELV) was updated to accomplish the hierarchy principle. This work aims to evaluate the scope of EPR for waste oils, for which other producer responsibility organizations (PROs) have responsibility. The method consists in estimating first the cointegrating equation for the variables lubricating oil production (LP) and oil price (FRP) using Dynamic Least Squares Estimator (DOLS) for the period 2007-2020. Subsequently, the cointegrating equation between the variables LP and electric domestic appliances with oils (AWO) and LP and vehicles production (VP) are estimated using DOLS. The main results show that the variables LP and FRP are cointegrated. Besides, the elasticity of the LP variable up to FRP was negative at 0,45. In contrast, variables LP and AWO, neither LP nor VP, are not cointegrated. That context suggested that EPR for waste oils should be considered to join other economic incentives.

What the current yield curve says, and what the future prices of energy do

Policymakers have always looked at the difference between the yields on long- and short-term Treasury securities as an indication of where the economy is heading. In this study, we extend the literature by examining the yield curve's ability to predict the short-term prices of crude oil and other energy products. Using linear and non-linear (parametric quantile) causality tests on daily data from 1986 to February 2020, our findings confirm that changes in the yield spread not only correlate with, but also drive the returns on crude oil, heating oil and natural gas in the short run. This short-run relationship is relatively absent from 1986 to 2003. However, since 2004, the relationship has remained quite strong, confirming that these products have been financialized. Market participants and policy makers may find our findings useful in understanding the nature of relationship between the shape of the term structure and future innovations in energy prices.

Modelling oil product prices with due regard to proliferation of alternative fuels and tightening of technical standards

PurposeThis paper aims to clarify the relationship between oil product prices and factors describing the most crucial emerging trends in fuel consumption. The work is aimed to test the hypothesis that the proliferation of alternative fuel cars is a significant factor in determining the level of motor fuel prices. The influence of technical standards of oil products on the model parameters is also analysed.Design/methodology/approachThe hypothesis testing is carried out on the basis of an econometric analysis of information regarding the North-West European commodity market and the data on the registration of alternative fuel passenger vehicles. Time series are analysed for the presence of a structural shift in the parameters of the model as a result of changes in the requirements of technical regulations for fuel.FindingsThe results suggest a different nature of the influence of the proliferation of alternative fuel passenger vehicles – it has little effect on diesel prices, whilst the indicators under study have a negative effect on the prices of motor gasoline. The construction of oil product price models has confirmed the impact of tightening the technical requirements for the parameters of dependence equations.Practical implicationsThe obtained results can be used in forecasting price indicators in oil refining for strategic and investment purposes.Originality/valueThis paper fulfils an identified need to take into account the emerging global trends in fuel consumption to obtain reliable parameters for oil product price modelling.

Testing directional predictability between energy prices: A quantile-based analysis

We evaluate the relationship between various energy markets at different quantiles of their respective return distributions by employing the recently developed cross-quantilogram method and the quantile Granger causality test. Three important open questions in the energy literature are revisited, namely, the “decoupling” of crude oil and natural gas prices, the mixed relationship between natural gas and electricity prices, and the “rockets and feathers” effect between crude oil and petroleum product prices. We find positive and significant spillover effects from crude oil to natural gas during bearish market conditions, which have weakened after 2013, suggesting a possible delink between the two markets in recent years. We further find a bi-directional causality at different market conditions for natural gas and electricity returns, especially at moderate and high return quantiles. However, in recent years the two markets have become more correlated during periods with low returns due to the transition of the natural gas power plants from peak to baseload facilities. Finally, our results do not find evidence for the “rockets and feathers” effect from crude oil to either the gasoline or heating oil market as we do not observe more significant spillovers during bullish market conditions.

Experimental research of a re-equipment wheeled vehicle category M1 into electromobile

Today, there are more than 1 billion ICE equipped vehicles worldwide. Some of them are electric vehicles, hybrid vehicles of various types, hydrogen and gas power plants. The part of environmentally friendly wheeled vehicles is very small. With an increase in the price of oil products in the foreseeable future, all these cars with ICE will have to be either disposed of or refurbished. Moreover, mainly for other types of energy, more environmentally friendly, with the aim of further using the resource of the body and transmission, in order to provide them with the opportunity to develop their resource. One of the promising areas is the re-equipment of the power plant to an electric or hybrid one.Ensuring the required indicators of traction and speed properties of electric vehicles is a difficult task and requires a more detailed assessment due to the great difficulties in finding the initial data and internal parameters of the system. The presented article considers the vehicle ZAZ 965 "Zaporozhets" of category M1, which was re-equipment into a battery electromobile. The vehicle is equipped with a traction electric motor Balkankar DS 3.6/7.5/14, a power storage battery with lithium cells, a maximum voltage of 100.8 V and a capacity of 6.45 kW∙h. The traction motor control system is impulse with electronic power switches. Traction motor power is controlled by a controller that changes the pulse-width modulation (PWM) depending on the control signal from the control unit and the logic of the system. The change in PWM signal also occurs when the thermal protection is triggered, and in the event of a voltage drop on the power storage battery.Experimental road studies have been carried out, electricity consumption by a vehicle at various speeds has been determined, a coefficient has been determined that characterizes the ratio of consumed electrical energy to the kinetic energy of a vehicle. Comparison of the results of theoretical and experimental studies testifies to the adequacy of the developed mathematical model and the initial provisions underlying the calculation of the indicators of the efficiency of the use of electric energy by electromobile re-equipment from common vehi-cle with ICE.

МЕРЫ ГОСУДАРСТВЕННОГО РЕГУЛИРОВАНИЯ ЦЕН НА НЕФТЬ И НЕФТЕПРОДУКТЫ КАК УСЛОВИЕ УКРЕПЛЕНИЯ ЭНЕРГЕТИЧЕСКОЙ БЕЗОПАСНОСТИ РОССИИ

The research presented in the article is based on the stable concept that the prices of oil and oil products are the most important factor in the economic development of Russia. A high price increases the profitability of oil companies and state budget revenues, while a low price increases the availability of energy resources for consumers and creates a positive multiplier effect in other sectors of the economy. The author draws attention to the dependence of the domestic economy on energy prices, which, in turn, forces the government to actively regulate this market in accordance with the adopted Doctrine of Russia's energy security. In the article, the author analyzes the possibilities of a compromise between budget replenishment and the tasks of increasing the competitiveness of the entire economy, notes the need for a constant search for measures to stabilize the domestic market, while a set of tools for solving current problems can create problems of strategic stability of the economy in the future. The author's main conclusion based on the results of the study is that the problem of energy security and regulation of oil prices cannot be solved outside the country's general industrial policy and the priority development of high-tech manufacturing industries.

A review on rising of fuel prices in India

From June 16, 2017, the Government of India executed its decision to adjust the prices of oil products on a daily basis. The public-sector oil marketing businesses began a daily price adjustment system, as opposed to the prior system for motor gasoline, which was fortnightly. The main point of this article is to determine the pre- and post-effects of variations in petrol prices in India. The research is based on the pricing of gasoline in five major Indian cities: Delhi, Mumbai, Chennai, Kolkata, and Bangalore. The prices of gasoline are examined for the year 2017. In 122 of the 365 days, the pricing were altered. The Mean Adjusted Method is used to determine the Average Abnormal Price (AAP) in petrol prices in five cities using the event research approach. The results of the mean adjusted analysis revealed that the dynamic fuel pricing had a considerable influence from Aug 22, 2017 to Oct 3, 2017. The ruling had no substantial impact on the other days.

Features of the petroleum products pricing in Russia, in the USA, and Saudi Arabia

The most important reason for the development of the world energy market is the sustainable increase in energy production and consumption. Environmental factors and inter-fuel competition influence the structure of the market. Such factors as the emergence of new types of energy and the development of technologies for hard-to-recover reserves production also have a strong influence on the stability of the global energy industry. However, in the long-term perspective, fossil fuels will remain the most important source of energy, especially in production countries. An exception may be only some regional markets. The consumption of oil and oil products continues to have a significant share in the transport sector and, due to the forecast of leading energy organizations, it will continue to take a large share in the structure of energy consumption of transport for the next twenty years. Thus, the study of the specifics of pricing for oil and oil products is an urgent issue in the current realities. In this article, the authors evaluated the impact of main influencing factors on oil products’ prices in the three largest oil-producing and exporting countries in the world: Russia, the United States, and Saudi Arabia. Based on a retrospective study of prices for petroleum products, significant factors have been identified to determine the peculiarities of the structure of prices for petroleum products in different countries. The authors have established the patterns of pricing in the analyzed market, arising due to the different levels of economic development of the countries under analysis, differences in taxation systems of the analyzed industry, and different rates of depletion of hydrocarbon reserves. The authors used the systematization and ordering of data in tabular and graphical form to identify stable patterns and trends in the pricing of petroleum products in the context of the key oil-producing countries. According to this research, we can conclude that: the main factor affecting the cost structure of gasoline in 2010-2018 in Russia is the tax burden, which currently accounts for 62.8 % of the oil product’s cost; the price of petroleum products in the United States is dependent on the cost of oil production; and the prices of oil products in the domestic market of Saudi Arabia currently depend on the cost of oil production and refining costs.