FX.co ★ Brent Fluctuates After US Attacks Venezuela

On Monday, Brent crude futures experienced an early dip toward $60 per barrel before rebounding, as investors considered the fallout from the US's strategic move against Venezuela and the subsequent detention of President Nicolas Maduro. The markets are closely examining the potential repercussions on the regional oil supply, especially since Venezuela boasts the largest proven oil reserves in the world. Nonetheless, some analysts foresee limited disruption, highlighting Venezuela's current output of less than 1 million barrels of crude daily, which constitutes less than 1% of the global production. Conversely, other experts caution that oil prices might climb later this year if the US ramps up pressure on international adversaries, such as Iran, leading to tighter supply conditions. In addition, reports suggest that the White House is encouraging US firms to participate in revitalizing Venezuela’s oil sector as a pathway to reclaim compensation for assets that Venezuela nationalized approximately two decades ago.