02084cas a2200265 a 4500 AALejournalIMF013175 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475586367 1018-5941 BD-DhAAL BD-DhAAL Unalmis, Deren. On the Sources and Consequences of Oil Price Shocks : The Role of Storage / Deren Unalmis, Ibrahim Unalmis, Filiz Unsal. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (41 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Building on recent work on the role of speculation and inventories in oil markets, we embed a competitive oil storage model within a DSGE model of the U.S. economy. This enables us to formally analyze the impact of a (speculative) storage demand shock and to assess how the effects of various demand and supply shocks change in the presence of oil storage facility. We find that business-cycle driven oil demand shocks are the most important drivers of U.S. oil price fluctuations during 1982-2007. Disregarding the storage facility in the model causes a considerable upward bias in the estimated role of oil supply shocks in driving oil price fluctuations. Our results also confirm that a change in the composition of shocks helps explain the resilience of the macroeconomic environment to the oil price surge after 2003. Finally, speculative storage is shown to have a mitigating or amplifying role depending on the nature of the shock. Mode of access: Internet Unalmis, Ibrahim. Unsal, Filiz. IMF Working Papers; Working Paper ; No. 2012/270 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/270/001.2012.issue-270-en.xml IMF e-Library