Oil price crash will not offer help that Asian economies need

Long-term uncertainty has grown, overturning budgets and demanding cool heads

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20200311 Oil terminal Qingdao.jpg

A crude oil import terminal in Qingdao, China, pictured in August 2019: the combination of easy money and cheap oil could worsen deflationary pressures. © FeatureChina/AP

In normal circumstances, a historic dive of over 30% in crude prices, prompted by the collapse of an alliance of 24 major oil producers, would have been a big boost for the import-dependent and energy-hungry emerging economies of Asia.

The disintegration of the OPEC production deal with Russia that had been working to keep global supply and demand in balance has raised the prospect of a flood of unwanted barrels.

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