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Maduro in U.S. Custody as Trump Touts American Oil Push to Rebuild Venezuela

Analysts see little near-term effect on prices given Venezuela's limited output.

Overview

  • The U.S. confirmed a military operation in Venezuela and said Nicolás Maduro is now in U.S. custody.
  • President Trump said major U.S. oil companies will "spend billions" to repair and operate Venezuela's oil infrastructure and be "reimbursed," with an oil embargo still in force.
  • Chevron said it will comply with relevant laws as ExxonMobil and ConocoPhillips offered no public commitment to invest.
  • Energy analysts expect minimal short-term market disruption because Venezuela produces under 1 million barrels per day and the global market is oversupplied.
  • Restoring output would take years and tens to over $100 billion, given extra-heavy Orinoco crude, deteriorated upgraders, past expropriations and unresolved arbitration claims.