Oil prices slip in fallout from Trump's Venezuela intervention
By Josh White
Date: Monday 05 Jan 2026
(Sharecast News) - Oil prices were lower on Monday as markets assessed the fallout from the US intervention in Venezuela, with traders concluding that the upheaval was unlikely to disrupt an already well-supplied global energy market.
Brent crude futures were last down 0.84% on ICE to $60.24 a barrel, while the NYMEX quote for West Texas Intermediate slipped 0.91% to $56.80, having earlier seen steeper declines before stabilising.
The initial move lower followed the weekend capture of Venezuelan president Nicolas Maduro by US forces, an event that briefly pushed Brent down as much as 1.2% towards the $60 mark.
While such a dramatic escalation might typically add a geopolitical risk premium, investors were instead focussed on the prospect that Washington's actions could ultimately lead to higher Venezuelan oil output.
Stephen Innes at SPI Asset Management said prices steadied after an early wobble as traders weighed "two opposing forces", noting that while instability in Latin America argued for a risk premium, the potential return of Venezuela's vast reserves to global markets pointed in the opposite direction.
That view was reinforced by broader market reactions in Asia, where oil prices dipped even as equities advanced, reflecting confidence that US military action was unlikely to materially disrupt supply in the near term.
Neil Shearing, group chief economist at Capital Economics, said the removal of Maduro was "unlikely to have meaningful near-term economic consequences for the global economy", though he cautioned that the political and geopolitical implications would reverberate.
Additional pressure on crude came from OPEC+'s decision over the weekend to keep output unchanged, reinforcing the perception of ample supply.
US president Donald Trump warned of further strikes if Venezuela did not cooperate with efforts to open up its oil sector.
Reporting by Josh White for Sharecast.com.
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