CRUDE-OIL PRICES BETWEEN 1985 AND 1994 - HOW VOLATILE IN RELATION TO OTHER COMMODITIES

It is said that since the mid-1980s oil has become a commodity like ot hers, and exhibits noticeable price volatility. How then do oil price fluctuations compare with those of other commodities? To address this question, we examine three aspects of price volatility for two marker crude oils and nine other widely traded commodities. Our results sugge st that between 1985 and 1994 crude oil is in the upper end of the ran ge of all measures of price volatility studied, but is not clearly bey ond the bounds set by other commodities. Implications of this result f or the oil industry are discussed. (C) 1998 Elsevier Science B.V. All rights reserved.