The oil market was already under pressure before the latest development, with crude futures falling 20% last year.
Oil futures fluctuated between gains and losses on Sunday evening in the first trading since the US captured Venezuelan President Nicolas Maduro over the weekend.
US benchmark West Texas Intermediate crude oil futures fell as much as 1.4% in the opening hour of trading before recovering into positive territory. They sat 0.5% higher at $57.61 at 8:03 p.m. on Sunday.
International benchmark Brench crude futures climbed 0.5% to $61.08 a barrel after falling as much as 1.4%.
The oil market has been under pressure, with crude prices falling 20% last year. A main issue facing the market is an oversupply of global crude. It’s been a focus of OPEC+, which also over the weekend said it will refrain from pumping new oil during the first quarter.
Despite Venezuela’s vast oil reserves — estimated at about one-fifth of the global total — the country’s output accounts for less than 1% of global daily oil production, reflecting years of aging infrastructure and the impact of sanctions.
Every time Huileng publishes a story, you’ll get an alert straight to your inbox!
Stay connected to Huileng and get more of their work as it publishes.
