When US President Donald Trump announced a bold plan to “manage” Venezuela’s oil sector through a transitional period, many braced for a price shock. ⚡️ But the reality? The oil market barely blinked.
Once a heavyweight in crude export, Venezuela now contributes less than 1% of global supply, OPEC says. Years of sanctions, underinvestment, and mismanagement have shrunk its output to the sidelines. And the recent US operation left key facilities intact—no pipeline drama, no refinery fires—so there was no sudden cut that could send prices skyrocketing.
Meanwhile, the International Energy Agency (IEA) forecasts that this year, 2026, the global oil market will face a record surplus of about 3.8 million barrels per day. Seasonal demand dips and planned output increases from OPEC+ members are already weighing on prices. In this environment, even a hiccup bigger than Venezuela’s current share would be easy to smooth out.
So, while the geopolitical headlines are loud, traders are keeping calm. The takeaway? Sometimes the market is smarter than the politics. 🌎💡
What’s your take—will politics ever trump market fundamentals? Let us know below! 👇
Reference(s):
cgtn.com
