Brazil could stand to benefit from the weekend's attacks on Saudi Arabian oil production facilities, according to veteran emerging markets investor Mark Mobius.
Drone attacks on Saudi crude facilities wiped out 5.7 million barrels of its daily crude production, more than 5% of the world's supply and 50% of the kingdom's oil output. Crude prices jumped to near historic highs in the immediate aftermath of the attacks. But they pared those gains after the U.S. administration authorized the release of oil from its strategic petroleum reserve in order to ensure the market retained supply.
Mobius told CNBC's "Street Signs Europe" Monday that one interesting market development was the lack of negative reaction from emerging markets to the news.
"I think people are beginning to think well maybe we should be looking to Brazil, for example, for their oil supply, to Mexico, to other countries in terms of where oil can come from," Mobius said.
"If you look at the reserves that Brazil has, you'll see that they can produce quite a lot of oil."
According to consulting giant McKinsey, Brazil has the potential for a 70% increase in oil production by 2035, providing it can create the right investment climate, and Mobius suggested the country was "really moving forward on reform."
Brazilian oil output hit 2.77 million barrels per day (bpd) in July, according to data from regulator ANP earlier this month. Saudi output for August came in at 9.77 million barrels per day, according to the latest S&P Global Platts survey.
Outside of Brazil, Mobius said Turkey, Indonesia and South Korea have "some very good companies" offering investment opportunities, while frontier markets in Vietnam and Thailand look attractive.
Mobius Capital Partners is also looking at countries it sees as being placed to benefit from the U.S.-China trade war.
"Because of the trade war, we didn't want to put too much into China, although China is still big in the portfolio, and we wanted to increase more in India and other parts of the world," he said.
"There is a lot of manufacturing that is moving to some of these other emerging countries, like Vietnam, like Cambodia, Bangladesh — a lot of the manufacturing from China is moving to these countries."