Venezuela holds the world’s largest oil reserves, but years of sanctions, neglect and underinvestment have crippled its energy sector. Donald Trump says US companies will repair Venezuela’s oil infrastructure and sell its oil to cover the costs of Washington’s intervention.
Although Venezuela produces just one percent of global oil, its vast reserves give the plan major geopolitical weight. China, Venezuela’s biggest oil customer, has condemned the removal of Nicolas Maduro and warned the move could inflame tensions.
The strategy is also seen as an attempt to curb China’s influence and reshape global energy flows. Canada and US refiners could be affected if Venezuelan supply resumes, requiring costly refinery adjustments.
There are concerns unrest in Venezuela could disrupt markets, while lower oil prices could also hurt Russia’s war economy. —Jan 6, 2025
Main image: Global Trade Review
