US President Donald Trump has said that his country will now “run” Venezuela and send US companies to fix its badly dilapidated oil infrastructure.
Oil prices fell on Monday (Jan 5) after a United States military operation seized Venezuelan leader Nicolas Maduro, whose country has the world’s biggest proven crude reserves.
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 Saturday, bombing military targets and spiriting away Maduro and his wife to face federal narcotrafficking charges in New York.
US President Donald Trump has said that the US will now “run” Venezuela and send US companies to fix its badly dilapidated oil infrastructure.
After years of under-investment and sanctions, Venezuela currently pumps around one million barrels per day, down from around 3.5 million barrels per day 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.
