Energy markets responds to Covid-19 pandemic

This paper aims to detect the sensitivity of the Oil market to different Covid-19 outbreak periods. To test its haven propriety, and its sensitivity to the study phase, our research investigates the Covid-19 indicators explanatory power. Using the OLS regression, our results reveal that new pandemic wave announcement declines the Oil market demand. It doubts its safe-haven property. In parallel, we detect that this market responds to the determining factors of the Covid-19 Pandemic. At this level, we found that the number of the reported cases has lost its explanatory power since the emergence of the second pandemic wave. On the contrary, mortality following this virus has become a significant explanatory factor.

Automated summary

This paper aims to investigate the sensitivity of the Oil market to different Covid-19 outbreak periods and explore its haven propriety and sensitivity to the study phase. The results reveal that a new pandemic wave announcement leads to a decline in Oil market demand, casting doubt on its safe-haven property. Additionally, it is found that this market responds to the determining factors of the Covid-19 Pandemic, with mortality rate becoming a significant explanatory factor.