Asian economies to face volatile oil prices over Venezuela, US plans for Caracas
After the arrest of Nicolas Maduro, oil and gas prices are set to continue fluctuating this year due to geopolitical issues, analysts say
On Monday morning, Benchmark Brent crude opened about 1.2 per cent lower near US$61 a barrel, before falling further to US$60.54 in the early afternoon, while US West Texas Intermediate crude declined by 0.5 per cent to US$57.04 a barrel.
The oil price movements followed the dramatic developments on Saturday in Caracas, where the US military removed Venezuelan leader Nicolas Maduro and moved him and his wife to New York.
Last year, oil prices dropped by almost 20 per cent, with crude falling to below US$60 a barrel for the first time in almost five years in December.
“History shows that forced regime changes in oil-producing countries often have material consequences for supply,” said Jorge Leon, head of geopolitical analysis at Rystad Energy, noting that political uncertainty in Venezuela was currently “extremely high.”