Key Highlights
- India began the new year by touching a new market high, but the gains were short-lived following the raid in Venezuela.
- This event caused bouts of volatility in oil prices and continues to be upbeat, though albeit at a slower pace, amid ongoing uncertainty surrounding other oil-producing nations, including Iran.
- Despite this double whammy, the overall impact on the global oil market has been limited.
- Despite this dual risk, the overall impact on the global oil market has been limited, supported by lower output from both countries, ample global supply, and a subdued demand outlook.
- Thus far, domestic unrest in Venezuela and Iran appears to be under control, aided by international intervention and support, which, if sustained, could restrict adverse spillovers into global markets.
