(FAVAR) model. We analyze the role of speculation in comparison to supply and demand forces as drivers of oil prices. The … main results are as follows: (i) While global demand shocks account for the largest share of oil price fluctuations …, speculative demand shocks are the second most important driver. (ii) The comovement between oil prices and the price of other …

main results are as follows: (i) While global demand shocks account for the largest share of oil price fluctuations … commodities is mainly explained by global demand shocks. (iii) The increase in oil prices over the last decade is mainly driven by … the strength of global demand. However, speculation played a significant role in the oil price increase between 2004 and …

This study examines the effects of oil supply and global demand shocks on the volatility of commodity prices in the …