US removal of Maduro has potential to reshape global oil market: analysts

The United States’ seizure of Venezuela’s president, Nicolas Maduro, has the potential to reshape the global oil market, as America gains effective control over a country with the world’s largest proven oil reserves, analysts said.

While crude prices may rise marginally in the short term, the move could boost long-term supplies and tighten the US’ grip over the oil market at a time when its position was starting to look more vulnerable, they said.

“Once the US gains control of the country, American oil companies will likely ramp up crude output there and therefore boost the global supply,” said Xi Jiarui, an oil market analyst at the consultancy JLC Network Technology, noting that Venezuela’s production potential is “enormous”.

“We’re going to have our very large United States oil companies – the biggest anywhere in the world – go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure,” Trump said during a press conference at his Mar-a-Lago residence.