How Does the Economic Policy Uncertainty Affect the Gap Between WCS and WTI?

DOI

10.2991/aebmr.k.220405.084How to use a DOI?

Keywords

EPU; WTI; WCS; Lag effect; Price spread

Abstract

Many studies have shown that the Economic Policy Uncertainty (EPU) has a significant effect on both West Texas Intermediate (WTI) and Western Canada Select (WCS) crude oil prices. This paper estimated the relationship between the EPU in both countries and the gap between WCS and WTI, specifically focusing on the effect changing in the different time periods. The result shows that Canada EPU has a fewer effect on the price spread than the US EPU. The maximum effect of EPU change in Canada and the United States on the price gap both appear at the 30th month. This paper also finds the different kinds of economic policy in the United States have different effect on the price gap in terms of time and size.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

Download article (PDF)

TY  - CONF
AU  - Feiling Lu
PY  - 2022
DA  - 2022/04/29
TI  - How Does the Economic Policy Uncertainty Affect the Gap Between WCS and WTI?
BT  - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022)
PB  - Atlantis Press
SP  - 509
EP  - 516
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220405.084
DO  - 10.2991/aebmr.k.220405.084
ID  - Lu2022
ER  -