Impact of COVID-19 pandemic on the energy markets

This article aims to uncover the effects of COVID-19 pandemic on energy markets in terms stock indexes, futures, ETFs, and implied volatility indexes. We model demonstrate various phases outbreak (COVID-19) market. COVID-19-induced uncertainty indicators like growth infection, economic policy (EPU), infectious diseases market (IDsMV) have shown pronounced markets’ historical volatility. The ETFs–stocks appears be more resilient line with S&P 500 stocks. WTI crude oil has an unprecedented overreaction amid outbreaks traded extreme level. investors’ sentiment was factually higher tail events, indicating that fearful investors rushed toward put options paid excess premium protect from unparalleled risk