Summary of the source
The article, I have chosen for my essay, investigates the impact of oil price shocks on the stock returns of oil companies. It explores the top five oil-importing economies from 2007–2019. A bunch of empirical evidence has been found from the returns of the oil sector stock index. These pieces of evidence specify that there is a significant relationship between the oil sector’s stock returns and oil prices. Furthermore, the results of this article justify a strong and positive relationship between the oil sector stock index and the stock market index. It also figures out that the GDP of the country leads to a positive impact on returns of oil stocks, even though, there is no significant impact of interest rates on the returns of oil stocks in any country.
Kushwah, S., & Siddiqui, A. ‘ Relationship Between Oil Price Movements and Stock Returns of Oil Firms in Oil Importing Economies’ Global Business Review, sage journal 2020.P. 8
Evaluation of the source
Many factors make a source reliable. we should check several things to verify that the source we are choosing is credible and reliable. so, we cannot consider every piece of information found on Google authentic, and we cannot use it as a backup of our argument. I found this source relevant to my essay because it carried the factors of oil price variation. My essay looks at the reason for and solution global rise in oil prices. So, I have found this piece of information very relevant and I have used it often in my essay. After a complete accessing process, I considered this source very reliable because this article is published in a very authentic journal as well, as well both authors are professors. They have also published many more articles in this field. However, still, there is the possibility of being biased as the authors have taken literature reviews from different resources.
On the other side, the latest source is considered more reliable and accurate than any old source. The article was written in 2020, which is only 1 year ago, so, this is another positive factor that makes this source more reliable and effective. The article appears very accurate because SAGE publishes only peer-reviewed and original research articles. They have a proven track record in their originality and validity. In the SAGE journal, the research is only completed by a highly qualified and well-experienced researcher. Some of the ideas I chose were based on research that was cited, and there were also diagrams and illustrations to help me understand them better. These all factors prove the high quality and accuracy of the source.
Impact of this source on the research
I have used this source when writing about the second reason why we should reduce oil consumption, which is the global rise of insane oil prices.
This source provides me with many new facts and figures which help me to see my topic in a new way. Before I was not aware of the mechanism of the oil prices, especially how it affects the economy of different countries. This article claimed that the global rise in insane oil prices affected millions around the world. It is determined that the price of oil depends on two main factors which are supply and demand. I came to know through this article that when the oil supply is stable and adequate to meet up world demand, there would not be an issue. I learned from the results of the source that there is a need to be calculated the consumption of oil, as the global rise of insane oil prices affected millions around the world. On the other hand, I have backed up many general points with this source. In short, it played a crucial role in writing a well-argumented piece of paper.