Impact of Negative Oil Price on Stock Markets of Major Oil Importing and Exporting Countries

Abstract

WTI crude oil FOB spot price was recorded to be negative $36.98 per barrel on April 20, 2020. Apparently, it seems to be a good news for oil importers and a bad one for oil exporters. However, the results of event study analysis of indices data ranging from July 1, 2019 to August 17, 2020 presents a different picture. The incidence of negative oil price had negative impact on stock markets of both, major oil importing and exporting countries. Cumulative abnormal returns measured on the basis of market factor of CAPM were significantly negative for all the indices for all three selected event windows.