Comovement of World Energy Prices and Commodity Prices: Evidence from Global Supply Chain Market
摘要
This paper explores the relationship between various commodities and Brent Crude Prices over 32 years. This paper documents whether any causal relation exists between various Agri commodities, Metals, Edible Oil, and Brent. The analyzed commodities were Aluminium, Barley, Brent crude, Copper, Cotton, Gold, Palm Oil, Rice, Silver, and Wheat. The data was downloaded from the official website of the World Bank. The Price of Aluminium only affects 1 Agri commodity i.e. Rice, Barley has no impact on any commodity. Surprisingly, Brent Crude only affects Palm Oil and no other commodity. Copper affects all the commodities except Gold, Silver and Cotton. Cotton Prices affect Gold and Rice, Gold Prices have the maximum impact on all the commodities except Aluminium and Rice. Palm Oil Prices affect Rice, Cotton and Wheat. Rice, Silver and Wheat Impact Five, Three and One commodities respectively.