Financial Crisis Contagion and the OPEC Oil Market

The impact of the financial crisis on the OPEC oil market is important to us as an important member of OPEC and an oil-exporting country with an oil-dependent economy. This study examines four networks, pre-financial crisis, US financial crisis, European debt crisis and post-financial crisis, using the contagion index and complex network for the period 2007-1-2 to 26-8-2019. The results show that during the US financial crisis and the European debt crisis, the New York stock market acts as a bridge node and transmits the shock to other markets. During the US financial crisis, the OPEC oil market and the European stock market suffered the most damage, which caused the European financial crisis in the next period. This study, for the first time, examines and compares the OPEC stock and oil market network in times of financial crisis. During the European debt crisis, the OPEC oil market suffered the most in the network. This research helps policymakers to adopt appropriate policies in times of financial crisis.