Oil prices declined on Monday as ample global supplies outweighed concerns over potential supply disruptions following the U.S. capture of Venezuelan President Nicolás Maduro during a dramatic raid over the weekend.
Brent crude futures fell 50 cents, or 0.8%, to $60.26 a barrel by 0752 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 53 cents, or 0.9%, to $56.79 a barrel.
Prices were volatile in early Asian trading as investors assessed the political turmoil in OPEC member Venezuela and its possible impact on oil supplies. U.S. President Donald Trump said Washington would take control of the country and confirmed that a U.S. embargo on Venezuelan oil remains in force after Maduro was detained in New York on Sunday.
Analysts noted that in a market already well supplied with crude, any further disruption to Venezuela’s exports is unlikely to have a significant immediate effect on prices. Kazuhiko Fuji, a consulting fellow at Japan’s Research Institute of Economy, Trade and Industry, said U.S. strikes had not damaged Venezuela’s oil industry.
“Even if Venezuelan exports are temporarily disrupted, more than 80% go to China, which has built up ample reserves, and alternative sourcing is unlikely to strain the market,” Fuji said.
Senior officials in Maduro’s government, who have described the detention of Maduro and his wife Cilia Flores as a kidnapping, remain in charge and have pledged unity. However, analysts said that a potential change in government could exert downward pressure on oil prices.
According to analysts at Raymond James, Venezuelan oil production could increase by a few hundred thousand barrels per day by the end of 2026, although significant further gains would require substantial investment. UBS strategist Giovanni Staunovo said any meaningful recovery in output would take considerable time.
Trump warned on Sunday that the U.S. could launch a second military strike on Venezuela if remaining members of the administration do not cooperate with his efforts to “fix” the country. “All bets are off in a chaotic change-of-power scenario like what occurred in Libya or Iraq,” said Helima Croft, head of commodities research at RBC Capital.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided on Sunday to maintain current production levels.
Trump also raised the possibility of further U.S. military action in Latin America, suggesting Colombia and Mexico could face intervention if they fail to curb the flow of illicit drugs into the United States. Analysts are also monitoring Iran’s response after Trump threatened intervention in an OPEC producer following a crackdown on protests, further heightening geopolitical tensions.
Source: Reuters / Agencies
