“…Stable oil prices are vital to global macroeconomics (Alquist et al, 2020), financial markets (Wang et al, 2019; Zhang & Zhang, 2023a) and investor sentiment (Apergis et al, 2018). However, understanding the crude oil asset pricing mechanism and forecasting crude oil prices is not a simple problem because crude oil price fluctuations are affected by fundamentals (Yu et al, 2023; Zhang & Zhang, 2023b) and a variety of nonfundamentals (Zhang & Zhang, 2022). For example, Zhang and Li (2019) point out that, in the long run, investor sentiment has significant causality and links to extreme risks in the crude oil market.…”