Demand for oil from emerging market countries, particularly those in Asia, is more than twice as important as demand from developed countries in accounting for changes in the real price of oil and oil production, according to a new Norges Bank working paper.

The paper's authors, Knut Are Aastveit, Hilde C. Bjørnland and Leif Anders Thorsrud, use a factor-augmented vector autoregressive model to distinguish between different groups of countries and their influence on the real price of oil during