ABSTRACT
Oil is highly associated with the national economy and has the reputation of “industry blood”. Crude oil is the most important energy and basic raw materials for the smooth operation of national economy. The international community has always been very concerned about oil price volatility on economic activities. The statistical results of Hamilton (2005)[1] Balke (2008)[2] showed that 9/10 of the U.S. recession were after the dramatically rising of oil price which occurred during the period from 1946 to 1973.
