In Venezuela, US special forces captured President Nicolas Maduro, leading to his transfer to a court in New York. The move is seen as part of a wider geopolitical struggle, raising questions about how Venezuela’s leadership will respond and whether a military conflict will escalate. Oil markets have remained relatively calm, with WTI crude prices showing no clear direction despite visible supply pressure.

Venezuela holds the largest oil reserves in the world, but struggles to utilize its potential due to international sanctions, underinvestment, and heavy oil extraction challenges. Even a complete shutdown in Venezuela would unlikely cause a sharp jump in global oil prices. US oil companies may play a role in rebuilding the sector, but major cost and time challenges exist.

Oil prices face resistance near $59 per barrel and show a downside bias, with potential to break below support near $56 per barrel. If prices fall, the next target could be long-term lows around $55 per barrel. InvestingPro offers AI-managed stock picks, real-time market insights, advanced chart analysis, and 1,200+ financial metrics to enhance stock market investing performance.

Read more at Investing.com: Crude Oil: Venezuela Risk Premium Fades With $56 Support Under Pressure