Oil Prices Slip After US Seizure of Venezuela’s President Maduro

ISLAMABAD: Oil prices fell on Monday following a US military operation that seized Venezuelan President Nicolas Maduro, raising expectations that increased Venezuelan crude supply could further pressure already weak global oil markets.

In early Asian trading, Brent crude slipped 0.21 percent to $60.62 per barrel, while West Texas Intermediate (WTI) declined 0.35 percent to $57.12 per barrel, both recovering slightly from earlier lows.

Market sentiment was affected by concerns that higher volumes of Venezuelan oil could enter the global market, adding to oversupply worries. Oil prices have already been under pressure in recent months due to excess supply and slowing demand growth.

US forces reportedly attacked Caracas early Saturday, targeting military installations and transferring Maduro and his wife to New York, where they are expected to face federal narcotics trafficking charges. US President Donald Trump said the United States would now “run” Venezuela and deploy American companies to repair the country’s severely damaged oil infrastructure.

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Venezuela holds the world’s largest proven crude oil reserves but currently produces around one million barrels per day, a sharp decline from approximately 3.5 million barrels per day in 1999. Years of sanctions, underinvestment, and mismanagement have severely weakened the country’s oil sector.

Analysts caution that any significant recovery in Venezuelan oil production would take time and require major investment. “Any recovery in production would require substantial investment given the crumbling infrastructure resulting from years of mismanagement and underinvestment,” UBS analyst Giovanni Staunovo told AFP.

Investment appetite remains limited as global oil markets continue to face a supply glut. Prices fell in 2025 despite economic headwinds such as trade tensions driven by US tariffs and the ongoing conflict in Ukraine.