Evidence on the nature and extent of the relationship between oil prices and equity values in the UK

Idris El-Sharif, Dick Brown, Bruce Burton, Bill Nixon, Alex Russell

    Research output: Contribution to journalArticlepeer-review

    254 Citations (Scopus)

    Abstract

    A number of recent studies have found a link between movements in crude oil prices and equity values. However, the literature concentrates almost exclusively on North American and Australian data and is primarily conducted at a stock market-wide level. The present study therefore investigates the relationship between the price of crude oil and equity values in the oil and gas sector using data relating to the United Kingdom, the largest oil producer in the European Union. The evidence indicates that the relationship is always positive, often highly significant and reflects the direct impact of volatility in the price of crude oil on share values within the sector.
    Original languageEnglish
    Pages (from-to)819-830
    Number of pages12
    JournalEnergy Economics
    Volume27
    Issue number6
    DOIs
    Publication statusPublished - 2005

    Keywords

    • Oil industry
    • Gas industry
    • Equity values

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