PL EN


2009 | 20 | 10 | 1-32
Article title

FACTORS SHAPING CRUDE OIL PRICES IN THEORY AND PRACTICE (Mechanizmy ksztaltujace cene ropy naftowej w teorii i rzeczywistosci)

Selected contents from this journal
Title variants
Languages of publication
PL
Abstracts
EN
The article examines the influence of various factors on the price of crude oil according to two approaches: American economist Harold Hotelling's rule of nonrenewable resources and a theory known as the short-term equilibrium approach. Empirical studies show that the Hotelling rule does not hold true in practice, because it is based on unstable assumptions. These include changing extraction costs and variable interest rates, in addition to factors such as market failure and strategic interactions. The short-term equilibrium model describes a crude oil pricing mechanism that is determined by a combination of economic, political and psychological factors among which the equilibrium of crude oil inventories plays a key role. The author is critical of the widespread use of a static resource/production ratio and argues that researchers should think over the consequences of misinterpreting this ratio and the implications of overestimating crude oil resources.
Year
Volume
20
Issue
10
Pages
1-32
Physical description
Document type
ARTICLE
Contributors
  • Wojciech Potocki, for postal address contact the journal editor
References
Document Type
Publication order reference
Identifiers
CEJSH db identifier
09PLAAAA06891
YADDA identifier
bwmeta1.element.0e892c7f-c27a-33e7-9b79-a02d4a3bc82e
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