Lutz Kilian, 02 April 2017

Technological advances caused a boom in the production of ‘tight’ oil in the US, starting in 2008, which has changed how the US is affected by movements in global fuel prices. This column identifies how the US tight oil boom contributed to the decline of global oil prices in 2014-16, and how it has changed the way oil price shocks are transmitted – not just in the US but in the global economy, explaining how European gasoline prices have been less responsive than the US price of gasoline to shocks.

Lutz Kilian, 13 November 2007

In Discussion Paper 6559 Research Fellow Lutz Killian dispels a number of myths concerning oil price shocks and their impact on the US economy. What is the origin of oil price shocks? Most oil price shocks since the 1970s have been driven by a combination of strong global demand for industrial commodities (including crude oil) and expectations shifts that increase precautionary demand for crude oil specifically.

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