Working Paper

The impact of oil price shocks on the U.S. stock market: a note on the roles of U.S. and non-U.S. oil production


Abstract: Kilian and Park (IER 50 (2009), 1267?1287) find shocks to oil supply are relatively unimportant to understanding changes in U.S. stock returns. We examine the impact of both U.S. and non-U.S. oil supply shocks on stock returns in light of the unprecedented expansion in U.S. oil production since 2009. Our results underscore the importance of the disaggregation of world oil supply and of the recent extraordinary surge in the U.S. oil production for analysing impact on U.S. stock prices. We also show that stock returns respond very differently at the industrial level to non-U.S. and U.S. oil supply shocks.

JEL Classification: E44; G12; Q43;

https://doi.org/10.24149/gwp249

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Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Globalization Institute Working Papers

Publication Date: 2015-09-01

Number: 249