Opinion | US strike and global oil prices
Summary
The US capture of Venezuela's former president Nicolás Maduro highlights the country's vast but problematic oil reserves, with global oil prices reacting amidst an oversupplied market and geopolitical uncertainties.
Key Points
- Venezuela holds one of the largest proven oil reserves globally, but production is hampered by heavy, sulphur-rich oil and deteriorating infrastructure.
- Economic viability of Venezuelan oil reserves depends heavily on oil prices and investment, with current reserves likely below the often-cited 300 billion barrels.
- Political mismanagement, purges, US sanctions, and underinvestment have severely reduced Venezuela's oil production over the years.
- The US capture of Nicolás Maduro has sparked political uncertainty, but immediate impact on global oil markets is limited due to current oversupply.
