COVID-19 and the energy price volatility

Apostolos Christopoulos, Petros Kalantonis, Ioannis Katsampoxakis*, Konstantinos Vergos

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

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    Abstract

    The challenges of the world economy and their societies, after the outbreak of the COVID19 pandemic have led policy-makers to seek for effective solutions. This paper examines the oil price volatility response to the COVID-19 pandemic and stock market volatility using daily data. A general econometric panel model is applied to investigate the relationship between COVID-19 infection and
    death announcements with oil price volatility. The paper uses data from six geographical zones, Europe, Africa, Asia, North America, South America, and Oceania for the period 21 January 2020 until 13 May 2021 and the empirical findings show that COVID-19 deaths affected oil volatility significantly.
    This conclusion is confirmed by a second stage analysis applied separately for each geographical area. The only geographical area where the existence of correlation is not confirmed between the rate of increase in deaths and the volatility of the price of crude oil is Asia. The conclusions of this study
    clearly suggest that COVID-19 is a new risk component on top of economic and market uncertainty that affects oil prices and volatility. Overall, our results are useful for policy-makers, especially in the case of a new wave of infection and deaths in the future.
    Original languageEnglish
    Article number6496
    Number of pages15
    JournalEnergies
    Volume14
    Issue number20
    DOIs
    Publication statusPublished - 11 Oct 2021

    Keywords

    • COVID-19
    • pandemic
    • energy market volatility
    • announcements
    • uncertainty
    • deaths
    • infections

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