American invasion likely to shape crude prices, baht

Thailand urged to move nimbly

- WICHIT CHANTANUSORNSIRI

The US invasion of Venezuela is likely to send global oil prices lower and weaken the baht, according to a researcher, while managing economic and diplomatic policy amid geopolitical entanglements could become more complicated.

Nonarit Bisonyabut, a research fellow at Thailand Development Research Institute, said the US invasion of Venezuela is akin to reviving the Monroe Doctrine, dividing the world into three spheres of influence. Zone 1 is the Americas, from Canada down to South America, while Zone 2 is Europe and Zone 3 consists of Asia.

He said the US move in Venezuela reflects the idea that, within the Americas, the US should be the governing power and the main beneficiary. China’s investments in Latin America have become a risk factor for the US, said Mr Nonarit.

In the short term, he said this may cause some volatility in global oil prices, but there is no significant risk of prices rising sharply as global oil supply this year is expected to exceed demand.