The Structure of Oil Market in Asian Countries: A Social Network Analysis Approach

Abstract

Crude oil holds the largest share of energy sources globally and is a widely traded commodity (Yu et al., 2008). This study is conducted to evaluate the crude oil export and import markets in Asian countries: market density, the role of market participants, and bilateral relations between countries. Design/Methodology/Approach: The author uses social network analysis to evaluate the crude oil export and import markets in Asian countries. Findings: The findings show that the crude oil import-export market network shows great distinction. Specifically, import and export activities are mainly concentrated in certain countries, while the rest countries have little interaction with the rest of the market. Moreover, the demand for crude oil imports and exports is steadily decreasing the bilateral relationship between countries. Consequently, a decrease in the crude oil supply is unlikely to lead to a rise in crude oil price in the short term. Practical Implications: Based on the research results, we provide policy implications for Asian crude oil exporting and importing countries. Originality/Value: This study helps Asian governments to determine the characteristics of crude oil import and export markets. On this basis, appropriate strategies for the growth of the oil and gas industry can be developed.

Keywords: Crude oil; Social Network Analysis; Asian countries.