Changes in the oil price are a source of relevant economic fluctuations, as well as a proxy for global shocks, since they affect different economies simultaneously. The estimated semi structural model aims to represent a small open economy with floating exchange rate and inflation targeting, having been calibrated and estimated based on Brazilian data. The innovation in this model lies on the inclusion of the energy sector, hereby represented by oil products. Their prices are influenced by the international oil price and they are used both for the production of the non-energy good, and in the household consumption basket, in order to represent the use of gas for commuting and leisure, as well as the use of liquefied petroleum gas for cooking. In this model, a 6 percent increase in the oil price leads to a 0.6 percent increase in headline inflation and a 0.4 percent increase in core inflation right after the shock, rapidly returning to its steady state level. The Central Bank reaction depends on whether the monetary policy rule responds to deviations from headline or core inflation. The interest rate increase is lower in the second scenario. Also, a forward-looking monetary policy rule leads to a higher increase in the nominal interest rate, but for a shorter period, being less contractionary, since it foresees that the oil price shock will have a short-lived impact on inflation. This contractionary policy leads to a hump-shaped 0.12-0.18 percent decrease in quarterly household consumption, notably due to a reduction in demand for energy goods (2 percent fall), but also for non-energy goods (0.06-0.12 percent fall).