Relationship between energy and financial markets in terms of energy supply security

In the economic and financial development processes of countries, the relationship between energy and financial markets is important for investors and policy makers. In this direction, the aim of the study is to investigate the effects of oil prices and energy supply security on financial markets in the example of stock markets of 25 countries that consume the most energy from developed and emerging economies. In this context, the effects of oil price and international energy security risk score on stock markets were examined using annual data. The analysis period is divided into two, firstly the stock market, oil price and energy supply security model for the period 1980-2018, and secondly, time series methods for the stock market and oil price model for the period 1980-2021 (Engle Granger, Philips Ouliaris and Gregory Hansen Co-integration tests and Toda Analyzes were made using Yamamoto, Fourier Toda Yamamoto Causality tests). The significant effects of evaluating the relationship between energy prices and stock market in terms of "security of supply", which also includes oil prices, compared to its narrow scope in the context of oil prices, have been identified and both evidence for cointegration and evidence for causality have been obtained. The results of the study showed that energy supply security and oil price are associated with stock markets in developed and emerging economies in the long run. It has been proven that energy supply security should be taken as an important factor like energy prices in the energy-finance relationship. These findings show that researchers, investors and policy makers should consider the effects of energy supply security on stock markets in the sample of the twenty-five energy consuming countries, and offer new perspectives for future studies.