This paper contributes to existing literature on crude oil markets by applying new approaches for identifying long and short-term trends as well as their interplay and triggers of changes. The results add to the understanding of contagion and transmission mechanisms between locally separated markets. This is of particular interest to policy makers as we provide evidence that OPEC meetings cause short-term market reactions but have little effect on long-term price developments. In addition, the long-term trend analysis offers additional insight on hedging strategies of portfolios consisting of long or short positions in WTI and Brent.
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