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Mitsubishi UFJ: Expectations of near-term pressure on oil prices are a positive for the Asian region
Traders have not reacted with particular alarm to U.S. military intervention in Venezuela or threats of further military action in the region, but they are still closely monitoring the subsequent impact of these events on the oil market.U.S. President Donald Trump stated that Venezuela would “deliver” up to 50 million barrels of oil to the United States, to be sold at market prices. This statement caused oil prices to fall further.However, a senior foreign exchange analyst at Mitsubishi UFJ Financial Group noted that expectations of near-term pressure on oil prices “are often a positive sign for emerging Asia,” as most economies in the region are net oil importers.
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