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.
Cite this article
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 -