Oil prices fall after US ousts Venezuela’s Maduro
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After years of under-investment and sanctions, Venezuela currently pumps around one million barrels per day, down from around 3.5 million bpd in 1999.
PHOTO: REUTERS
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TOKYO - Oil prices fell on Jan 5 after a US military operation seized Venezuelan leader Nicolas Maduro
Increased volumes of Venezuelan oil entering the market would add to oversupply concerns and put further pressure on oil prices, which have fallen in recent months.
In morning trade in Asia, Brent Crude was down 0.21 per cent at US$60.62 per barrel while West Texas Intermediate was off 0.35 per cent at US$57.12, both off earlier lows.
US forces attacked Caracas in the early hours of Jan 3, bombing military targets and spiriting away Mr Maduro and his wife to face federal narco-trafficking charges in New York.
US President Donald Trump has said that the United States will now “run” Venezuela
After years of under-investment and sanctions, Venezuela currently pumps around one million barrels per day (bpd), down from around 3.5 million bpd in 1999.
But analysts say that alongside other major questions about Venezuela’s future, substantially lifting its oil production will not be easy or quick.
“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.
Investing today also holds little appeal: Oil prices are weighed down by a supply glut and fell in 2025 despite significant growth headwinds like Mr Trump’s tariff war and the ongoing conflict in Ukraine. AFP
