The relationship between crude oil prices and stock markets in Sweden and Norway

Sammanfattning: In this study, the authors examined the relationship between crude oil price and the Swedish and Norwegian stock markets. Using linear regression models the authors found that the Swedish stock market and Norwegian stock market both have a positive relation with crude oil price. This supports the hypothesis that crude oil price has a positive impact on Norwegian stock market, since Norway is an oil exporting country. However, this result contradicts a hypothesis of a negative relationship for an oil importing country like Sweden. The authors also looked into the relationship between exchange rates (Swedish krona and Norwegian krone) and oil price, which reveals that oil price is significantly negatively correlated with Swedish krona and Norwegian Krone. The study contributes with evidence from underexplored regions of the world.