prices are determined by shocks to the supply and demand for oil tankers, to the utilization of tankers, and to the cost of … cost shocks. In response to higher costs, voyage profits decline, as cost shocks are only partially passed on to round …-trip voyage rates. Oil exports from the Arabian Gulf also decline, reflecting lower demand for VLCCs. Positive utilization shocks …

supply shocks that have been used as external or internal instruments for VAR models …

conclusion that the one-month oil supply elasticity is close to zero, which implies that oil demand shocks are the dominant …