Global Markets

North Korean weapons tests put oil and gas prices in firing line

North Korea’s missile tests and growing military capability are raising concerns for its neighbours and could affect the cost of oil and gas North Korea’s missile tests and growing military capability are raising concerns for its neighbours and could affect the cost of oil and gas.
By Andrew Walker 5 September 2017 0 27450
What Pyongyang says is the test launch of a Hwasong-12 intermediate range missile in August. What Pyongyang says is the test launch of a Hwasong-12 intermediate range missile in August. (PA)

The escalation in North Korea’s testing of missiles and nuclear weapons could lead to increased volatility in the oil and gas market as the chances of a miscalculation and ensuing conflict increase. 

Japan, China and South Korea are among the world’s largest energy importers, accounting for 34% of the seaborne oil trade and 55% of the trade in LNG. If conflict broke out and trade to these countries were disrupted, it could lead to excess supply in the market, according to Chris Graham, product suite director...