Fluctuation in petroleum prices and its effect on g20 stock market

It is important to have general information about the concept of energy and to realize that energy resources are indispensable for human life. When it comes to energy, the classification of renewable and non-renewable energy sources comes to the fore. As a non-renewable energy source, oil is used in the preparation and service of many products we use and consume in daily life. Increases or decreases in oil prices may cause direct or indirect changes in the prices of the products used. Changes in oil prices can affect the capital markets as in the real economy and move the stock markets up or down. G20 is one of the most important international organizations established by major countries in developed and developing countries. G20 was established in different geographies of the world and with countries with different economic characteristics. It may be beneficial to know the stock exchanges of the G20 member countries and how they can react to different developments. In addition, these stock market indices may be affected by oil prices as well as macroeconomic developments. This study will examine the effects of fluctuations in crude oil prices on G20 stock indexes. With this study, firstly information was given about energy sources. Then, the structure of G20 and selected stock market indices of member countries will be explained. In this context, the effect of monthly frequency changes in crude oil prices on G20 country stock indexes was investigated. According to the panel VAR cointegration test conducted with monthly panel data for January 2015 and December 2019 period, it was understood that the crude oil price and stock market index variables were not cointegrated and there was no long-term relationship between them. However, it was determined that the changes in crude oil prices were the reason for the changes in the G20 country stock indexes.