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Oil Prices React to US Action in Venezuela

Published January 5, 2026, 09:26
Oil Prices React to US Action in Venezuela

Following the US operation in Venezuela and the capture of President Nicolás Maduro, oil prices initially fell but then partially recovered. The American WTI crude grade fell by 0.60% to $56.98 a barrel, while North Sea Brent fell by 0.49% to $60.45. President Trump announced that the US would allow American oil companies to exploit Venezuela's vast oil reserves, with the aim of 'governing' the country until a 'safe, proper and fair transition' is achieved. Venezuela holds the largest oil reserves in the world, surpassing even Saudi Arabia and Iran, however its production has decreased significantly in recent years, from 3.5 million barrels per day to 1 million. This decline is due to various factors, including political instability and economic difficulties. However, analysts estimate that potential disruptions to the global oil market will be limited, as Venezuela accounts for only 1% of global supply. The market is already considered adequately supplied, so an increase in Venezuelan production, even if it occurs, is not expected to have a significant impact on prices. This development is being closely monitored by international markets, as access to Venezuela's reserves could change the balance of global energy policy. However, political uncertainty and potential difficulties in exploiting these reserves remain important factors to consider.