Oil prices pose biggest political risk: Aon

Low oil prices will compound political risks across emerging markets this year, according to a new report released Wednesday.

Aon’s Political Risk Map for 2015 warns that countries including Russia, Iraq, Venezuela and Libya will face further political pressure in the months ahead.

“The fall in oil prices are having quite a dramatic impact on a lot of oil producing countries which don’t have the strength of foreign reserves,” Karl Hennessy, CEO, Aon Global Broking told CNBC via telephone ahead of the report’s release.

“As they start to lose revenue, this puts pressure on countries and raises the potential for instability.”

The annual study grades 163 countries for political risk based on factors like the probability of political interference, banking sector vulnerability, sovereign non-payment and quality of regulation.

CNBC

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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam