Oil prices edged lower on Monday as the global market’s ample supply helped cushion concerns stemming from political turmoil in Venezuela, despite the U.S. detention of President Nicolas Maduro in the country with the world’s largest proven crude reserves.
Brent crude futures were down 23 cents, or 0.4%, at $60.52 a barrel by 09:40 GMT, while U.S. West Texas Intermediate crude fell 21 cents, also 0.4%, to $57.11 a barrel.
Trading was volatile in early Asian hours as investors digested developments in Venezuela—an OPEC member whose oil exports have been constrained by U.S. sanctions—and weighed the potential consequences for global supply.
U.S. President Donald Trump said Washington would assume control of the country and confirmed that the embargo on Venezuelan oil would remain in place after Maduro was detained and transferred to a New York jail on Sunday.
Analysts noted that, in a market already well supplied, any additional disruption to Venezuelan exports is unlikely to have a meaningful short-term impact on prices. Venezuela’s oil production has steadily declined over the past two decades due to mismanagement and a lack of foreign investment following the nationalisation of the industry in the early 2000s. Output averaged about 1.1 million barrels per day last year, representing roughly 1% of global supply.
Kazuhiko Fuji, a consulting fellow at Japan’s Research Institute of Economy, Trade and Industry, also pointed out that U.S. strikes had not damaged Venezuela’s oil infrastructure. “Even if Venezuelan exports are temporarily disrupted, over 80% are destined for China, which has built up ample reserves,” Fuji said.
Venezuela’s acting president said on Sunday that the country was willing to work with the United States. “This reduces the risk for an extended embargo on Venezuelan oil exports with oil potentially flowing freely out of Venezuela in not too long,” SEB analysts said.
Trump also raised the prospect of further U.S. intervention, suggesting Colombia and Mexico could face military action if they fail to curb illicit drug flows. Separately, analysts are monitoring Iran’s response after Trump threatened on Friday to intervene in a crackdown on protests in the OPEC producer.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies agreed over the weekend to keep output levels unchanged, reinforcing expectations of a well-supplied oil market.
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