Coping with Oil Price Volatility

Oil is important in every economy; when its prices are high and volatile, governments feel compelled to intervene. Because there can be large costs associated with such interventions, reserve banks, central planning institutions, and think tanks in...

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Main Authors:	Bacon, Robert, Kojima, Masami
Format:	ESMAP Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ADVERSE EFFECTS APPROACH AVAILABILITY AVERAGE PRICES BALANCE BALANCE OF PAYMENTS BARRELS OF OIL BEHAVIOR OF PRICES BUDGET SURPLUS BUYER CASH FLOW COAL COMMODITIES COMMODITY COMMODITY PRICES CONSUMER GOODS CONSUMER PRICE CONSUMER PRICE INDEX COPYRIGHT COST INCREASES CRUDE OIL CRUDE OIL PRICE DATA AVAILABILITY DEVELOPING COUNTRIES DEVELOPING COUNTRY DIESEL DISTRIBUTION OF OIL DOMESTIC OIL DOMESTIC PRICE DOMESTIC PRICES ECONOMIC EFFECTS EFFICIENCY IMPROVEMENT END USERS ENERGY CONSERVATION ENERGY DEMAND ENERGY EFFICIENCY ENERGY POLICIES ENERGY PRICE ENERGY SOURCES EQUAL SHARES EXCHANGE RATE EXPENDITURE EXPENDITURES FINANCIAL ASSETS FISCAL POLICY FOOD PRICES FOREIGN EXCHANGE FUEL FUEL PRICES FUEL TYPE FUELS FUTURE PRICE FUTURE PRICES FUTURES GAS GASOLINE GASOLINE PRICES GOVERNMENT BUDGET GOVERNMENT REVENUE GRAPHICS GROSS DOMESTIC PRODUCT HYDROCARBONS HYDROPOWER INCOME INCOME GROUPS INDIVIDUAL FIRMS INDUSTRIAL COUNTRIES INSTITUTION INTERNATIONAL MARKET INVESTMENT DECISION KEROSENE LOCAL CURRENCIES LOCAL CURRENCY MACROECONOMIC POLICY MARGIN ACCOUNT MARKET PRICE MATERIAL NATURAL GAS NATURAL GAS PRICES NUCLEAR POWER OIL OIL CONSUMPTION OIL EXPORTER OIL EXPORTERS OIL MARKETS OIL PRICE OIL PRICES OIL PRODUCERS OIL PRODUCTS OIL SUPPLY OIL USE OUTPUT OUTPUTS PETROLEUM PETROLEUM EXPORTING COUNTRIES PETROLEUM GAS PORTFOLIO PRICE BANDS PRICE BEHAVIOR PRICE CHANGES PRICE CONTROLS PRICE FLUCTUATIONS PRICE FORECAST PRICE INCREASE PRICE INCREASES PRICE INFORMATION PRICE LEVEL PRICE LEVELS PRICE MOVEMENTS PRICE OF OIL PRICE SERIES PRICE SPIKES PRICE TREND PRICE TRENDS PRICE UNCERTAINTY PRICE VARIATION PRICE VARIATIONS PRICE VOLATILITY PRICING POLICY PRICING STRATEGY PRIMARY ENERGY RATE OF RETURN REGULAR GASOLINE RENEWABLE ENERGY RESERVE BANKS RESIDUAL FUEL RESIDUAL FUEL OIL RESULT RESULTS SALE SALES SAVINGS SELLING PRICE SELLING PRICES SMALL COUNTRIES SPOT PRICE SPOT PRICES STOCKS SUBSTITUTES SURPLUS TAX TIME PERIOD TIME PERIODS VOLATILE PRICES
Online Access:	http://documents.worldbank.org/curated/en/2008/08/9780518/coping-oil-price-volatility http://hdl.handle.net/10986/17539

id	okr-10986-17539
recordtype	oai_dc
spelling	okr-10986-175392021-04-23T14:03:38Z Coping with Oil Price Volatility Bacon, Robert Kojima, Masami ADVERSE EFFECTS APPROACH AVAILABILITY AVERAGE PRICES BALANCE BALANCE OF PAYMENTS BARRELS OF OIL BEHAVIOR OF PRICES BUDGET SURPLUS BUYER CASH FLOW COAL COMMODITIES COMMODITY COMMODITY PRICES CONSUMER GOODS CONSUMER PRICE CONSUMER PRICE INDEX COPYRIGHT COST INCREASES CRUDE OIL CRUDE OIL PRICE DATA AVAILABILITY DEVELOPING COUNTRIES DEVELOPING COUNTRY DIESEL DISTRIBUTION OF OIL DOMESTIC OIL DOMESTIC PRICE DOMESTIC PRICES ECONOMIC EFFECTS EFFICIENCY IMPROVEMENT END USERS ENERGY CONSERVATION ENERGY DEMAND ENERGY EFFICIENCY ENERGY POLICIES ENERGY PRICE ENERGY SOURCES EQUAL SHARES EXCHANGE RATE EXPENDITURE EXPENDITURES FINANCIAL ASSETS FISCAL POLICY FOOD PRICES FOREIGN EXCHANGE FUEL FUEL PRICES FUEL TYPE FUELS FUTURE PRICE FUTURE PRICES FUTURES GAS GASOLINE GASOLINE PRICES GOVERNMENT BUDGET GOVERNMENT REVENUE GRAPHICS GROSS DOMESTIC PRODUCT HYDROCARBONS HYDROPOWER INCOME INCOME GROUPS INDIVIDUAL FIRMS INDUSTRIAL COUNTRIES INSTITUTION INTERNATIONAL MARKET INVESTMENT DECISION KEROSENE LOCAL CURRENCIES LOCAL CURRENCY MACROECONOMIC POLICY MARGIN ACCOUNT MARKET PRICE MATERIAL NATURAL GAS NATURAL GAS PRICES NUCLEAR POWER OIL OIL CONSUMPTION OIL EXPORTER OIL EXPORTERS OIL MARKETS OIL PRICE OIL PRICES OIL PRODUCERS OIL PRODUCTS OIL SUPPLY OIL USE OUTPUT OUTPUTS PETROLEUM PETROLEUM EXPORTING COUNTRIES PETROLEUM GAS PORTFOLIO PRICE BANDS PRICE BEHAVIOR PRICE CHANGES PRICE CONTROLS PRICE FLUCTUATIONS PRICE FORECAST PRICE INCREASE PRICE INCREASES PRICE INFORMATION PRICE LEVEL PRICE LEVELS PRICE MOVEMENTS PRICE OF OIL PRICE SERIES PRICE SPIKES PRICE TREND PRICE TRENDS PRICE UNCERTAINTY PRICE VARIATION PRICE VARIATIONS PRICE VOLATILITY PRICING POLICY PRICING STRATEGY PRIMARY ENERGY RATE OF RETURN REGULAR GASOLINE RENEWABLE ENERGY RESERVE BANKS RESIDUAL FUEL RESIDUAL FUEL OIL RESULT RESULTS SALE SALES SAVINGS SELLING PRICE SELLING PRICES SMALL COUNTRIES SPOT PRICE SPOT PRICES STOCKS SUBSTITUTES SURPLUS TAX TIME PERIOD TIME PERIODS VOLATILE PRICES Oil is important in every economy; when its prices are high and volatile, governments feel compelled to intervene. Because there can be large costs associated with such interventions, reserve banks, central planning institutions, and think tanks in industrial countries have been carrying out quantitative analyses of oil price volatility for a number of years. This report focuses on fluctuations around trends in oil prices. It examines measurements of oil price volatility and evaluates several different approaches to coping with oil price volatility: hedging, security stocks, price-smoothing schemes, and reducing dependence on oil including diversification. It does not deal with the impact of oil price volatility on countries' macroeconomic performance or with macroeconomic policy responses; these generally have more to do with coping with higher price levels than with higher volatility per se. The study examines oil price volatility largely from the point of view of consumers and does not cover the management of revenue volatility by large oil exporters. 2014-03-31T21:23:57Z 2014-03-31T21:23:57Z 2008-08 http://documents.worldbank.org/curated/en/2008/08/9780518/coping-oil-price-volatility http://hdl.handle.net/10986/17539 English en_US Energy Sector Management Assistance Program (ESMAP) energy security special report;no. 005/08 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: ESMAP Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ADVERSE EFFECTS APPROACH AVAILABILITY AVERAGE PRICES BALANCE BALANCE OF PAYMENTS BARRELS OF OIL BEHAVIOR OF PRICES BUDGET SURPLUS BUYER CASH FLOW COAL COMMODITIES COMMODITY COMMODITY PRICES CONSUMER GOODS CONSUMER PRICE CONSUMER PRICE INDEX COPYRIGHT COST INCREASES CRUDE OIL CRUDE OIL PRICE DATA AVAILABILITY DEVELOPING COUNTRIES DEVELOPING COUNTRY DIESEL DISTRIBUTION OF OIL DOMESTIC OIL DOMESTIC PRICE DOMESTIC PRICES ECONOMIC EFFECTS EFFICIENCY IMPROVEMENT END USERS ENERGY CONSERVATION ENERGY DEMAND ENERGY EFFICIENCY ENERGY POLICIES ENERGY PRICE ENERGY SOURCES EQUAL SHARES EXCHANGE RATE EXPENDITURE EXPENDITURES FINANCIAL ASSETS FISCAL POLICY FOOD PRICES FOREIGN EXCHANGE FUEL FUEL PRICES FUEL TYPE FUELS FUTURE PRICE FUTURE PRICES FUTURES GAS GASOLINE GASOLINE PRICES GOVERNMENT BUDGET GOVERNMENT REVENUE GRAPHICS GROSS DOMESTIC PRODUCT HYDROCARBONS HYDROPOWER INCOME INCOME GROUPS INDIVIDUAL FIRMS INDUSTRIAL COUNTRIES INSTITUTION INTERNATIONAL MARKET INVESTMENT DECISION KEROSENE LOCAL CURRENCIES LOCAL CURRENCY MACROECONOMIC POLICY MARGIN ACCOUNT MARKET PRICE MATERIAL NATURAL GAS NATURAL GAS PRICES NUCLEAR POWER OIL OIL CONSUMPTION OIL EXPORTER OIL EXPORTERS OIL MARKETS OIL PRICE OIL PRICES OIL PRODUCERS OIL PRODUCTS OIL SUPPLY OIL USE OUTPUT OUTPUTS PETROLEUM PETROLEUM EXPORTING COUNTRIES PETROLEUM GAS PORTFOLIO PRICE BANDS PRICE BEHAVIOR PRICE CHANGES PRICE CONTROLS PRICE FLUCTUATIONS PRICE FORECAST PRICE INCREASE PRICE INCREASES PRICE INFORMATION PRICE LEVEL PRICE LEVELS PRICE MOVEMENTS PRICE OF OIL PRICE SERIES PRICE SPIKES PRICE TREND PRICE TRENDS PRICE UNCERTAINTY PRICE VARIATION PRICE VARIATIONS PRICE VOLATILITY PRICING POLICY PRICING STRATEGY PRIMARY ENERGY RATE OF RETURN REGULAR GASOLINE RENEWABLE ENERGY RESERVE BANKS RESIDUAL FUEL RESIDUAL FUEL OIL RESULT RESULTS SALE SALES SAVINGS SELLING PRICE SELLING PRICES SMALL COUNTRIES SPOT PRICE SPOT PRICES STOCKS SUBSTITUTES SURPLUS TAX TIME PERIOD TIME PERIODS VOLATILE PRICES
spellingShingle	ADVERSE EFFECTS APPROACH AVAILABILITY AVERAGE PRICES BALANCE BALANCE OF PAYMENTS BARRELS OF OIL BEHAVIOR OF PRICES BUDGET SURPLUS BUYER CASH FLOW COAL COMMODITIES COMMODITY COMMODITY PRICES CONSUMER GOODS CONSUMER PRICE CONSUMER PRICE INDEX COPYRIGHT COST INCREASES CRUDE OIL CRUDE OIL PRICE DATA AVAILABILITY DEVELOPING COUNTRIES DEVELOPING COUNTRY DIESEL DISTRIBUTION OF OIL DOMESTIC OIL DOMESTIC PRICE DOMESTIC PRICES ECONOMIC EFFECTS EFFICIENCY IMPROVEMENT END USERS ENERGY CONSERVATION ENERGY DEMAND ENERGY EFFICIENCY ENERGY POLICIES ENERGY PRICE ENERGY SOURCES EQUAL SHARES EXCHANGE RATE EXPENDITURE EXPENDITURES FINANCIAL ASSETS FISCAL POLICY FOOD PRICES FOREIGN EXCHANGE FUEL FUEL PRICES FUEL TYPE FUELS FUTURE PRICE FUTURE PRICES FUTURES GAS GASOLINE GASOLINE PRICES GOVERNMENT BUDGET GOVERNMENT REVENUE GRAPHICS GROSS DOMESTIC PRODUCT HYDROCARBONS HYDROPOWER INCOME INCOME GROUPS INDIVIDUAL FIRMS INDUSTRIAL COUNTRIES INSTITUTION INTERNATIONAL MARKET INVESTMENT DECISION KEROSENE LOCAL CURRENCIES LOCAL CURRENCY MACROECONOMIC POLICY MARGIN ACCOUNT MARKET PRICE MATERIAL NATURAL GAS NATURAL GAS PRICES NUCLEAR POWER OIL OIL CONSUMPTION OIL EXPORTER OIL EXPORTERS OIL MARKETS OIL PRICE OIL PRICES OIL PRODUCERS OIL PRODUCTS OIL SUPPLY OIL USE OUTPUT OUTPUTS PETROLEUM PETROLEUM EXPORTING COUNTRIES PETROLEUM GAS PORTFOLIO PRICE BANDS PRICE BEHAVIOR PRICE CHANGES PRICE CONTROLS PRICE FLUCTUATIONS PRICE FORECAST PRICE INCREASE PRICE INCREASES PRICE INFORMATION PRICE LEVEL PRICE LEVELS PRICE MOVEMENTS PRICE OF OIL PRICE SERIES PRICE SPIKES PRICE TREND PRICE TRENDS PRICE UNCERTAINTY PRICE VARIATION PRICE VARIATIONS PRICE VOLATILITY PRICING POLICY PRICING STRATEGY PRIMARY ENERGY RATE OF RETURN REGULAR GASOLINE RENEWABLE ENERGY RESERVE BANKS RESIDUAL FUEL RESIDUAL FUEL OIL RESULT RESULTS SALE SALES SAVINGS SELLING PRICE SELLING PRICES SMALL COUNTRIES SPOT PRICE SPOT PRICES STOCKS SUBSTITUTES SURPLUS TAX TIME PERIOD TIME PERIODS VOLATILE PRICES Bacon, Robert Kojima, Masami Coping with Oil Price Volatility
relation	Energy Sector Management Assistance Program (ESMAP) energy security special report;no. 005/08
description	Oil is important in every economy; when its prices are high and volatile, governments feel compelled to intervene. Because there can be large costs associated with such interventions, reserve banks, central planning institutions, and think tanks in industrial countries have been carrying out quantitative analyses of oil price volatility for a number of years. This report focuses on fluctuations around trends in oil prices. It examines measurements of oil price volatility and evaluates several different approaches to coping with oil price volatility: hedging, security stocks, price-smoothing schemes, and reducing dependence on oil including diversification. It does not deal with the impact of oil price volatility on countries' macroeconomic performance or with macroeconomic policy responses; these generally have more to do with coping with higher price levels than with higher volatility per se. The study examines oil price volatility largely from the point of view of consumers and does not cover the management of revenue volatility by large oil exporters.
format	Publications & Research :: ESMAP Paper
author	Bacon, Robert Kojima, Masami
author_facet	Bacon, Robert Kojima, Masami
author_sort	Bacon, Robert
title	Coping with Oil Price Volatility
title_short	Coping with Oil Price Volatility
title_full	Coping with Oil Price Volatility
title_fullStr	Coping with Oil Price Volatility
title_full_unstemmed	Coping with Oil Price Volatility
title_sort	coping with oil price volatility
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2008/08/9780518/coping-oil-price-volatility http://hdl.handle.net/10986/17539
_version_	1764437603741859840

Coping with Oil Price Volatility

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