Oil Market to Absorb Maduro Shock as Supplies Swell

While the capture of Venezuelan President Nicolás Maduro following U.S. airstrikes marks a seismic geopolitical development, early signals suggest the global oil market will largely take the move in stride, Devika Krishna Kumar, Lucia Kassai and Alex Longley reported for Bloomberg News.

Venezuela now accounts for less than 1% of global supply. (Photo: Wilifredor Wikimedia Commons)

Venezuela’s oil infrastructure was not affected by a series of U.S. attacks in Caracas and other states, according to people with knowledge of the matter.

Key facilities, including Jose port, the Amuay refinery and oil fields in the Orinoco Belt, remain operational, said the people, who declined to be named because the matter is confidential.

While Venezuela was once a major oil-producing powerhouse, its output has declined sharply over the past two decades and now accounts for less than 1% of global supply.

Recent U.S. pressure on Maduro’s regime, including the seizure of tankers carrying Venezuelan crude, forced the country to shut some oil wells.

Meanwhile, global oil supplies are expected to exceed demand by 3.8 million barrels a day in 2026, marking a record glut, according to the International Energy Agency.

Crude prices have slumped in recent weeks to around $60 a barrel, though one weekend retail trading product run by IG Group showed U.S. crude prices briefly rising by nearly $2 from Friday’s close.