Global Market of Energy Resources: Assessment of Inter-Price Influence

<p>This paper intends to investigate the energy resource inter-price influence on the Russian, European, American and Asian geographical markets. Two energy commodities (crude oil and coal), whose prices are not regulated by the government of the Russian Federation, are studied. According to the economic theory the price trajectories of energy resources are linked together due to their physical characteristics and the nature of the substitute-products. In this research the following hypotheses are put forward in order to prove the previously mentioned statement.&nbsp; These hypotheses are about the existence of integrated crude oil and coal markets; about the presence of strong relationship between crude oil and coal prices on the Russian market. The main method that is used in the study is an econometric analysis, which includes the Engle Granger test, the Johansen test and the Error Correction Model (ECM). The analysis discovered that only the coal market was integrated over the period 2009 &ndash; 2014. Besides, it was found out that the oil prices on the European, American and Asian markets influenced the oil prices on the market of the RF in the long- and the short-run. Inverse relationship was not detected. The research also found out that the prices of crude oil and coal on the Russian market are not cointegrated.&nbsp;</p>