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After U.S. Capture of Maduro, Venezuela Starts Shutting Oil Wells as OPEC+ Holds Line

Markets see limited immediate price fallout due to Venezuela’s small current output.

Overview

  • President Donald Trump confirmed Maduro’s arrest on January 3 and pledged a temporary U.S.-led administration to reopen the oil sector to American companies.
  • PDVSA began closing groups of wells and asked joint ventures to cut output as storage fills and diluent supplies run short under a U.S. blockade, with analysts estimating 200,000–300,000 bpd already shut in.
  • Venezuelan exports have been curtailed by tanker seizures and a naval blockade, with December shipments roughly halved to about 500,000 bpd and blending constraints tightening flows.
  • OPEC+ kept a pause on output increases in a Sunday update through at least April, while traders prepare for volatility but point to ample supply that could cap price gains.
  • Venezuela holds about 303 billion barrels of reserves yet produces roughly 1.1 million bpd of heavy, acidic crude, and experts say meaningful restoration would require years and large investment.