IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

Buyer Beware: The Asymmetric Impact of the Strategic Petroleum Reserve on Crude Oil Prices

Abstract:
Have U.S. oil market policy interventions succeeded in lowering the price of crude oil? This paper uses a structural vector autoregression model of the U.S. oil market to estimate the effect of purchases and releases by the Strategic Petroleum Reserve (SPR). Unanticipated releases from the SPR have no measurable impact on oil prices, but unanticipated purchases for the SPR raise oil prices by about 1 percent. These results are robust to identification using external instruments.

Download Executive Summary Purchase ( $25 )

Keywords: Energy Prices, Oil and the Macroeconomy, Government Policy, Oil Shocks

DOI: 10.5547/01956574.42.6.rste

References: Reference information is available for this article. Join IAEE, log in, or purchase the article to view reference data.

Published in Volume 42, Number 6 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.

 

© 2022 International Association for Energy Economics | Privacy Policy | Return Policy