America News Agency

West Texas Intermediate (WTI) crude futures climbed 1.8% to $58.34 a barrel, while Brent crude futures traded at $61.82 a barrel.

Oil prices fell more than 18% in 2025, dropping to their worst level in five years as crude markets were shaken by concerns over oversupply and weakening demand.

US President Donald Trump said Washington would govern Venezuela until a new leader is elected and, as part of the intervention, major US oil companies would be allowed to control a large share of oil production.

Venezuela holds the world’s largest proven oil reserves, but production has declined due to aging infrastructure, while heavy US sanctions have also constrained exports.

According to analysts, US control over Venezuela’s oil would boost global supply and put further pressure on crude prices, though such a scenario would take time to materialize.

Ben Emons, chief investment officer and founder of Fed Watch Advisors, wrote in a note: “If the sudden events in Venezuela could be reduced to a single market outcome, it would be future oil supply, especially as oil and gasoline prices could fall sharply.”

Emons added that higher Venezuelan production would lower gasoline prices in the US and could boost Trump’s popularity in the late-2026 midterm elections, but stressed that modernizing oil facilities and building new infrastructure would “take some time.”

ING Head of Commodities Strategy Warren Patterson said in a note that statements by Venezuelan Vice President Delcy Rodriguez calling for cooperation with the US suggest a “smooth transition” may lie ahead despite recent turmoil.

Patterson argued this could increase the likelihood of the US lifting its blockade on sanctioned oil tankers entering and leaving Venezuela, creating downward pressure on oil prices in the short term.

However, Patterson warned that a “more complex transition” could jeopardize about 900,000 barrels per day of Venezuelan oil supply. While the impact would likely be limited in a currently “well-supplied” market, he noted some upside risks and forecast Brent prices to average $57 per barrel this year.

Despite having the world’s largest proven oil reserves, Venezuela accounts for only a small share of global supply, making any disruption to its exports unlikely to have a significant impact on prices. Years of underinvestment have left its output at less than 1% of global production.

Analysts also said production could rise if political stability is restored and the US succeeds in increasing investment in the country’s energy infrastructure, adding more barrels to an already well-supplied market.

Meanwhile, Saudi Arabia cut its selling prices to Asia for a third consecutive month, while OPEC+, comprising Russia and the Organization of the Petroleum Exporting Countries, maintained its plan to halt production increases in the first quarter due to concerns over oversupply and weak demand.