Oil price shocks drive agricultural commodity prices post-crisis, impacting global markets.
Oil price changes affect agricultural commodity prices differently depending on the type of shock. Before the 2006-2008 food crisis, oil shocks played a small role in price variations. However, after the crisis, they became more significant. Oil-specific factors, like precautionary demand, now have a greater impact on agricultural prices than general demand shocks. This study used a structural VAR analysis to show these trends, with a second analysis confirming the results.