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Will Natural Gas Prices Decouple From Oil Prices Across the Pond?, Reinout De Bock, Jose Gijon

Contributor
Abstract
We show that US natural gas prices have decoupled from oil prices following substantial institutional and technological changes. We then examine how this interrelationship has evolved in Europe using data for Algeria, one of Europe’s key gas suppliers. Taking into account total gas exports and cyclical conditions in partner countries, we find that gas prices remain linked to oil prices, though the nexus has loosened. Both high oil prices and a modest industrial recovery in partner countries have kept gas exports at low levels in recent years, suggesting changing market forces. The paper then shows how such shifts can have important macroeconomic implications for a big gas exporter such as Algeria
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; Figure 1. Algerian Gas Export Volumes and Prices 2000-10; II. Global Increase in Production and Producers; Figure 2. Global Gas Production 1990-2009; III. Gas versus Oil prices in the US; A. A Loosening Link; Figure 3. US Oil and Gas Prices 1990-2010; Figure 4. US Oil and Gas Prices 1990-2010 (Energy Equivalent); B. Econometric Model; C. Spillover of Oil Price Shock on Gas Price; Figure 5. IRF of US Gas Price after an Oil Price Shock; Figure 6. Variance Decompositions of US Gas Prices
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (46 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781455265411

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