Crude oil price differentials, product heterogeneity and institutional arrangements Academic Article


  • Energy Economics


  • © 2014 Elsevier B.V.We adopt time-series and cross-section methods to analyse long-term relationships between pairs of crude oil prices and assess how physical and institutional factors affect their speed of reaction to exogenous shocks. Using a methodological approach which does not require identifying specific crudes as benchmarks, we show that the overwhelming majority of prices have stable long term relationships. We also find that crudes with physical similarity converge quickly after a shock, while prices for oil produced in OPEC countries are relatively slow to revert to equilibrium after a shock.

publication date

  • 2014/12/1


  • Benchmark
  • Cross section
  • Crude oil
  • Crude oil price
  • Exogenous shocks
  • Institutional arrangements
  • Institutional factors
  • Long-term relationships
  • Oil
  • Oils
  • Time series

International Standard Serial Number (ISSN)

  • 0140-9883

start page

  • S28

end page

  • S32