The influence from a demand perspective with real economic activity: China versus the United States in world oil markets
In this paper, we provide direct evidence for an increasingly critical role of China in the world oil markets. Specifically, our empirical results confirm that the influence of China's oil demand on the oil price of the world has increased over time and surpassed that of the United States. The contribution of demand perspective from China are formally quantified by three key variables of world oil market, which are world oil production, real economic activity and the real price of crude oil.