Abstract

The price of crude oil is critical to the growth of the global economy, especially in the current economic climate. The objective of this paper is to quantify the factors that shape crude oil prices by including drivers from various sectors, such as market fundamentals (supply and demand), financial factors, commodity market factors and geopolitical factors, for the period 2009-2021. The analysis was performed with two statistical methods:  the generalized least squares model (GLS) and a robust statistical method the Least Trimmed Squared (LTS). Comparing and critically evaluating the results found, practical policy implications were obtained.