THE INFLUENCE OF OIL PRICES ON STOCK MARKET DURING FINANCIAL CRISIS: CASE STUDY OF SAUDI ARABIA AND RUSSIA

Abstract

Many studies argued about the impact of oil prices in financial markets. This research aims to investigate the correlation between oil price shocks and stock market behavior using market index data for Saudi Arabia and Russia. These two countries are the world biggest exporters of oil. This study analyzed daily, period ranges from January 2nd, 1995 to May 6th, 2015. The findings revealed that there is a positive relationship between Saudi and Russian stock market and oil prices. Where, financial crisis and Arab uprising negatively influenced stock market. These findings are relevant to portfolio managers, investors, and policy maker to make strategic plans by predicting the future movement of stock markets through the change in oil prices