Energy Oil prices stabilize after US action in Venezuela
Oil prices recovered after initial losses in Asian trading on Monday. Despite geopolitical tensions and the US attack on Venezuela, the swings remained limited.
05.01.2026, 07:21
SDA
Initially, prices fell by around one percent after the USA arrested the Venezuelan president in a military operation. As trading progressed, however, prices turned positive at times. In the early hours of Monday morning, the US reference price WTI was trading 0.6 percent lower at 56.97 dollars per barrel, while Brent North Sea crude fell by 0.6 percent to 60.36 dollars.
In addition to the military escalation in Venezuela, the uncertainty was triggered by US President Donald Trump's announcement that Washington intends to use the country's extensive oil reserves in the future. Venezuela has the largest proven oil reserves in the world, but production is well below previous levels.
Analysts pointed out that the global oil supply is still considered comfortable and that Venezuelan production currently only accounts for a small share of the global market. In the short term, this limits the upward potential of prices. At the same time, political instability in the South American country could temporarily fuel concerns about possible supply disruptions.
In the medium to long term, however, the prospect of additional supply from Venezuela is seen as a price-dampening factor. According to market observers, it would take years to rebuild the oil industry, meaning that additional volumes would not be available in the short term. Overall, oil prices therefore remained within a narrow trading range despite the tense situation in Venezuela.
