Modeling oil price fluctuations and international stockpile coordination

Journal Article · · J. Policy Model.; (United States)

DOI:https://doi.org/10.1016/0161-8938(85)90005-5· OSTI ID:5059723

Hubbard, R G; Weiner, R J

Major interruptions in the supply of crude oil in the Middle East have caused significant economic damage in terms of lost output and increased inflation in the industrial countries. To the extent that the macroeconomic costs of shocks are a function of the magnitude of the oil price increases, domestic or internationally coordinated policies to restrain oil price increases during disruptions can be beneficial. One such policy initiative is the release of oil held in public stockpiles. Motivations for private and public stockpiling in an intertemporal optimizing model are addressed. As a special case of the general model, the authors develop and simulate a model of the world oil market to examine the benefits (in terms of lower world oil prices) of releasing oil from the US Strategic Petroleum Reserve. 34 references, 3 tables.

• Research Organization: Northwestern Univ., Evanston, IL
• OSTI ID: 5059723
• Journal Information: J. Policy Model.; (United States), Journal Name: J. Policy Model.; (United States) Vol. 7:2; ISSN JPMOD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002 -- Energy Planning & Policy-- Petroleum
DRAWDOWN
ENERGY MODELS
ENERGY SOURCES
ENERGY SUPPLIES
FOSSIL FUELS
FUELS
GLOBAL ASPECTS
PETROLEUM
PRICES
RESERVES
RESOURCES
STOCKPILES
STRATEGIC PETROLEUM RESERVE
SUPPLY DISRUPTION
VARIATIONS