The Effect of the OPEC’s announcements on the price fluctuations of crude oil

The purpose of this essay is to scrutinize the effects of the announcements of OPEC (including increasing, decreasing and not changing the supplies) on the fluctuations of oil price in crude oil markets. For this purpose, this research has applied the conditional variance inconsistency and affected the variance control to consider the effects of these announcements on the fluctuations of crude oil from 1987 to 2019 based on the outcomes obtained from the analysis of events. applied the conditional variance inconsistency and affected the variance control to consider the effects of these announcements on the fluctuations of Brent and WTI crude oil from 1987 to 2019 based on the outcomes obtained from the analysis of events. The findings reveal that these announcements differently affect the WTI Brent and the fluctuations of oil market. These types of announcements differently influence the fluctuations of the crude oil market. Indeed, this effectivity is reduced by time dragging. According to the results, it is suggested that members cooperated together in planning and executing decisions in an organized pattern in order to highly affect the crude oil market.