NEW PUBLICATION: It was very interesting to explore how political tensions between China and the US impact the oil market. The originality of our approach lies in the use of a quantitative measure of political tensions. One crucial result can be expressed as follows, a structural deterioration of political relations implies a reduction of oil demand in the long run. Diplomatic efforts to fix the relationship between these two major players could be very effective, according to historical decompositions. I am deeply grateful to thank Gert Peersman for his precious help with the RATS code.
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Yifei Cai, Valérie Mignon, Jamel Saadaoui, Not all political relation shocks are alike: Assessing the impacts of US–China tensions on the oil market, Energy Economics, Volume 114, 2022, 106199, ISSN 0140-9883, https://doi.org/10.1016/j.eneco.2022.106199.