Oil prices climbed in early Asian trading on Monday, reversing earlier losses after the United States announced the capture of Venezuelan President Nicolas Maduro and declared plans to assume control of the South American nation’s government.
The market also reacted to an OPEC+ decision to keep current oil production levels unchanged, even as political tensions rise between Saudi Arabia and the United Arab Emirates over ongoing conflict in Yemen.
By 00:09 GMT, Brent crude futures for March delivery were up 0.3% at $60.90 per barrel, while U.S. West Texas Intermediate (WTI) futures inched higher to $57.16 per barrel.
These modest gains come after a turbulent start to 2026 for the oil market. Crude prices have already fallen more than 18% this year, the steepest annual decline in five years, as fears of oversupply and weakening global demand weigh heavily on investor sentiment.
U.S. Capture of Venezuela’s Maduro Sparks Talk of Rising Oil Supply
U.S. forces detained Venezuelan President Nicolas Maduro over the weekend, with the leader now expected to face drug-trafficking charges in New York.
President Donald Trump confirmed that Washington intends to oversee Venezuela until new elections take place. As part of that transition, he stated that U.S. oil companies would be granted access to the country’s vast energy resources and be allowed to manage production operations.
Venezuela holds the world’s largest proven oil reserves, but years of underinvestment, aging infrastructure, and U.S. sanctions have sharply reduced output and exports.
Market analysts noted that U.S. involvement could eventually lead to an increase in global crude supply, a development that may put further downward pressure on prices. However, any meaningful production ramp-up is expected to take time.
“If there’s one takeaway for the market, it’s the potential rise in future oil supply,” said Ben Emons, chief investment officer at Fed Watch Advisors. He added that greater Venezuelan output could also drive down U.S. gasoline prices, a scenario that may benefit Trump politically ahead of the midterm elections.
Still, Emons emphasized that upgrading infrastructure and boosting capacity in Venezuela will not happen overnight.
OPEC+ Maintains Output Levels Despite Political Strains
Oil traders were also watching developments within OPEC+, which voted over the weekend to leave production levels unchanged.
The decision followed a brief meeting that reportedly did not address simmering tensions among member states. Friction between Saudi Arabia and the UAE intensified in late December amid renewed escalation in Yemen.
Throughout 2025, OPEC+ gradually increased oil production, contributing to concerns about a growing supply surplus that has already pressured crude prices.
For now, markets remain cautious, balancing expectations of potential Venezuelan supply growth with uncertainty surrounding global demand and geopolitical risks.
