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Could Oil Be the Solution to North Korea Tensions?

Even before North Korea detonated its most powerful nuclear bomb yet, Japan was calling for moves to cut off its oil supply.Afterward, U.S. President Donald Trump threatened to halt all trade with any country that does business with Kim Jong Un’s regime. China, which supplies most of its food and fuel, on Monday called the warning “unacceptable.”Some sort of oil embargo is likely to come up as the international community discusses a response to the nuclear test, starting with a United Nations Security Council meeting later Monday. China has resisted such a move in the past over fears that North Korea might collapse, but has grown increasingly frustrated with its rogue ally.Still, while China might make a gesture to Trump in an effort to defuse his criticisms, it may not be the panacea the U.S. president is looking for, and do little in a practical sense to slow Kim down.

Source: China’s Oil Lifeline to North Korea Targeted After Nuclear Blast – Bloomberg [1]

Risk Aversion Spreads After Latest Missile Test [2]

North Korea Thermonuclear Ambitions Rock Markets [3]


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam [8]

Senior Market Analyst, UK & EMEA at OANDA [9]
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
Craig Erlam

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