How falling oil prices are fast becoming a catalyst for emerging markets

The outlook for oil, a key source of revenue for Russia and Saudi Arabia, is adding a fresh twist for a market already obsessed with Federal Reserve tightening and the U.S.-China trade dispute

Falling oil prices are fast becoming a catalyst for emerging markets. Last week’s slide in crude was partly behind the weakness in the Russian ruble, Mexican peso and Malaysian ringgit, according to Societe Generale SA. With oil wallowing in a bear market, OPEC and its allies started laying the groundwork to cut oil supply in 2019 in a meeting in Abu Dhabi on Sunday.

“Oil-importing emerging economies’ currencies would likely react negatively to a cut in OPEC output given Iranian oil exports are already likely to wane over time under the impact of U.S. sanctions,” said Mansoor Mohi-uddin, the Singapore-based head