Oil prices whipsawed in volatile Asian trade on Monday after the U.S. over the weekend captured Venezuelan President Nicolas Maduro and said it was taking control of the Latin American country.
Traders also digested an OPEC+ decision to leave oil production unchanged, amid heightened political tensions between Saudi Arabia and the UAE over a conflict in Yemen.
Brent oil futures for March fell 0.4% to $60.53 a barrel by 23:52 ET (04:52 GMT), while West Texas Intermediate crude futures fell 0.5% to $56.84 a barrel.
Prices had risen as much as 0.5% earlier in the day, but pared most early gains.
Oil prices were nursing an over 18% slide in 2025, their worst in five years, as fears of a supply glut and weakening demand battered crude markets.
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US captures Venezuela’s Maduro, Trump touts oil takeover U.S. forces captured Maduro in a weekend strike, with the Venezuelan leader now set to face drug-trafficking charges in New York.
U.S. President Donald Trump said that Washington will run Venezuela until a new leader is elected, and that as part of the U.S. takeover, major U.S. oil companies will be allowed to move into the country and control its oil production.
Venezuela has the largest proven oil reserves in the world. But production in the country has faltered due to aging infrastructure, while crippling U.S. sanctions limited its exports.
Analysts said that U.S. control of Venezuela’s oil was likely to increase global supplies, which could in turn weigh further on crude prices, although such a scenario was likely to take time.
“If the sudden events in Venezuela could be distilled into one market conclusion, it would be future oil supply… especially as oil and gasoline prices may drop sharply,” Ben Emons, chief investment officer and founder at Fed Watch Advisors said in a note.
Emons noted that U.S. gasoline prices were likely to fall with more Venezuelan production, a scenario that could provide Trump with a boost in popularity going into the midterm election.
But Emons also noted that such a scenario will “take a while,” given the time taken to upgrade and build out more oil facilities in Venezuela.
OPEC+ leaves production unchanged amid increased tensions Oil markets were also digesting a weekend decision by the Organization of Petroleum Exporting Countries and allies, known as OPEC+, to leave production unchanged.
The group reached the decision after a quick meeting that did not address heightened tensions between some of the cartel’s members, reports said.
Tensions between Saudi Arabia and the UAE surged in late-December amid an escalation in a long-running conflict in Yemen.
The OPEC+ had raised production steadily through 2025, adding to market concerns over a supply glut and pressuring oil prices.
