Al Jazeera
Crude futures slid, and shares in Asia retreated as markets grappled with the ramifications of the political upheaval in Venezuela and the fate of its petroleum reserves, Reuters news agency reports.
Oil prices extended their slide after US President Donald Trump said Venezuela will be “turning over” up to 50 million barrels of oil to be sold at its market price following the toppling and abduction of the nation’s leader.
“The most likely outcome is a boost to the global economy because of that oil,” Michael McCarthy, CEO of investment platform Moomoo Australia and New Zealand, told Reuters, regarding the upheaval in Venezuela. “Clearly, it’s a negative for the oil price itself, but energy costs are key to your global economic outlook.”
“The flip side to this is that the increase in uncertainty for the geopolitical outlook might overwhelm any positive economic benefits,” he added.
US crude fell 1.66 percent to $56.18 a barrel, and Brent slumped to $59.94 per barrel, down 1.25 percent on the day.
Oil prices extended their slide after US President Donald Trump said Venezuela will be “turning over” up to 50 million barrels of oil to be sold at its market price following the toppling and abduction of the nation’s leader.
“The most likely outcome is a boost to the global economy because of that oil,” Michael McCarthy, CEO of investment platform Moomoo Australia and New Zealand, told Reuters, regarding the upheaval in Venezuela. “Clearly, it’s a negative for the oil price itself, but energy costs are key to your global economic outlook.”
“The flip side to this is that the increase in uncertainty for the geopolitical outlook might overwhelm any positive economic benefits,” he added.
US crude fell 1.66 percent to $56.18 a barrel, and Brent slumped to $59.94 per barrel, down 1.25 percent on the day.
