US-Venezuela Conflict Theatens Global Oil Prices: Analysts Warn of Systemic Riskr
The recent escalation between the United States and Venezuela is expected to drive global oil prices higher and introduce a potential systemic risk to the energy market, according to Iraqi Prime Minister’s financial advisor Mazhar Mohammed Saleh.
Despite producing around 800,000 barrels per day, Venezuela’s heavy crude oil is crucial for refineries worldwide. Any disruption in exports could trigger global operational bottlenecks, Saleh warned.
Earlier, U.S. President Donald Trump announced a “successful” strike in Venezuela, stating that President Nicolás Maduro and his wife were captured and flown out of the country. The operation was reportedly coordinated with U.S. law enforcement, with further details expected in an upcoming press conference.
Venezuela Holds the Largest Proven Oil Reserves
Saleh emphasized that Venezuela, despite its limited output, holds the world’s largest proven oil reserves, making it a critical player in the global energy balance. Analysts say the conflict could add a geopolitical risk premium, signaling the return of oil as a political and military tool, threatening energy stability in South America.
Supply disruptions of heavy crude could push crude oil prices above $70 per barrel, especially amid existing tensions in Eurasia, the Middle East, and South America, low inventories, and declining stockpiles. Recent ship-tracking data shows several tankers turning back from Venezuelan ports, adding to market uncertainty.
The U.S. has intensified sanctions on Venezuela, targeting Maduro’s associates and Chinese companies involved in the oil sector, heightening the risk of further oil market disruptions.
Keywords: US Venezuela conflict, global oil prices, systemic risk, heavy crude oil, crude oil price spike, Venezuela oil reserves, energy market, geopolitical risk, oil supply disruption, Mazhar Mohammed Saleh