The escalation of the political crisis in Venezuela and Donald Trump's statements regarding control over the oil-producing country have provoked expectations of rising oil prices. Despite the forceful removal of Nicolas Maduro, PDVSA's oil infrastructure has not been damaged, but exports are virtually paralyzed due to the active US embargo. This is reported by Reuters, writes UNN.
Details
Due to sanctions and the blockade of tankers, Venezuelan oil exports fell to 500,000 barrels per day in December, and from January 1, supplies almost completely stopped (with the exception of Chevron). This led to overflowing storage facilities, forcing PDVSA to reduce production and mothball wells.
Donald Trump confirmed that the embargo remains in effect. An additional factor of tension was his threat to intervene in the situation in Iran amid ongoing protests in the country.
Analysts' forecasts and OPEC+ position
Experts from Capital Economics and Saxo Bank believe that a sharp jump in prices can be avoided due to sufficient supply in the global market. Any disruptions in Venezuela can be compensated by other producers.
Prices may rise slightly due to geopolitical tensions, but sufficient global supply will continue to limit these risks
Against this background, OPEC+ decided to maintain a stable level of production in the first quarter of 2026. Market participants remain cautious, given that 2025 ended with the largest annual losses in oil value since 2020.
Oil prices rose slightly after the largest annual decline since 202002.01.26, 08:35 • [views_5021]