Oil prices fall back after U.S. capture of Venezuelan leader Maduro
MicrosoftMicrosoft(US:MSFT) The Hindu·2026-01-05 12:04

Market Reactions - Oil prices experienced a decline, with U.S. benchmark crude oil trading at $56.96 per barrel, down 36 cents, and Brent crude at $60.41 per barrel, down 34 cents [3] - Precious metals saw significant gains, with gold rising by 2.7% and silver increasing by 6.6%, as investors sought safe-haven assets amid geopolitical tensions [5] - Asian shares rallied, with the Nikkei 225 index jumping 3% to 51,832.80, marking its highest close since October 31, 2025 [6] Economic Context - Venezuela's oil industry is in a state of disrepair due to years of neglect and international sanctions, with current production at approximately 1.1 million barrels per day, which some analysts believe could potentially double or triple with major investments [4] - The U.S. military operation to capture Venezuelan President Nicolas Maduro has led to market uncertainty, but analysts suggest that the near-term economic and financial implications are minor [3] Upcoming Economic Indicators - The first full week of the new year will feature important U.S. economic updates, including reports on the services sector and consumer sentiment, which are expected to provide insights into the U.S. economy's performance at the end of 2025 and its outlook for 2026 [9][10]