Abstract
The long-run relationship between three energy commodities, namely crude oil, jet
kerosene and natural gas; and the FTSE/JSE Top 40 Index will be examined. A second
relationship between the three commodities and the FTSE/JSE Top 40 Index against the South
African Rand (versus the United States Dollar) will also be explored to determine the impact
of the variables on the ZAR. The analysis of the variables will include correlation, regression,
vector autoregression and the Johansen cointegration test to determine linear interdependencies
among the variables. The results indicate that there is a cointegrating relationship between the
both relationships investigated.