Will Natural Gas Prices Decouple From Oil Prices Across the Pond? /

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...

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Autor principal: De Bock, Reinout
Altres autors: Gijon, Jose
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2011.
Col·lecció:IMF Working Papers; Working Paper ; No. 2011/143
Accés en línia:Full text available on IMF
Descripció
Sumari: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.
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Descripció física:1 online resource (21 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students