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Oil Slips as Wall Street Rallies After U.S. Seizes Maduro, Opens Path for Venezuela Drilling

Analysts cite oversupply, with Venezuela’s degraded capacity keeping near-term price effects modest.

Overview

  • Nicolás Maduro appeared in a New York court on Monday, two days after his capture in a U.S. military operation in Caracas.
  • The White House signaled U.S. oil companies can pursue access to Venezuelan reserves, though restoring damaged infrastructure would take years.
  • Oil fell about 1% in early Asian trading, with WTI near $56 and Brent around $60, before stabilizing later in the session.
  • U.S. stocks gained, led by energy and defense names such as Chevron, Exxon, Halliburton, Lockheed Martin and Northrop Grumman, while Paris finished slightly higher.
  • Venezuela holds the world’s largest proven reserves yet produces roughly 1 million barrels a day, with December exports already reduced to about 500,000 bpd by U.S. sanctions and a new embargo.