Global oil prices react to US operation in Venezuela
Oil prices react to US operation in Venezuela (photo: Getty Images)
Global oil prices began to fluctuate sharply after the United States carried out a special operation in Venezuela, creating market uncertainty about the future of the world's largest crude oil reserves, the Financial Times reported.
Brent oil prices fell by 1.2% to $60 per barrel shortly after trading opened. Later, prices edged up to $61.21.
Venezuela produces less than 1 percent of global oil output, and US sanctions and a maritime blockade constrain its exports. However, according to the US Energy Information Administration, the country holds about 17 percent of the world's proven crude oil reserves, giving it the potential to increase supplies significantly.
Traders now have to assess the impact of US intervention on the oil market, as analysts warn of an approaching crude oil surplus.
Most analysts expect oil prices to decline at the start of this year, following a 20 percent drop in 2025, to the current Brent level of just over $60 per barrel.
While more oil could come from Venezuela in the medium term, a significant increase in exports is unlikely in the short term.
Despite the turmoil in Venezuela, OPEC+ has given no signal of an immediate change in strategy. Eight members of the producers' group, including Saudi Arabia, Russia, and the United Arab Emirates, held a brief meeting and agreed to maintain the pause in output increases at least until April.
On December 16, US President Donald Trump announced a complete blockade of sanctioned oil tankers entering or leaving Venezuelan waters.
Oil tankers are avoiding Venezuela due to US threats to seize vessels transporting oil.
