Oil prices swing after Trump's Venezuela raid as investors eye global supply

Core Viewpoint - The oil market is experiencing fluctuations in prices following the US capture of Venezuelan President Nicolas Maduro, with concerns about oversupply and the potential for increased investment in Venezuela's oil sector. Group 1: Oil Price Movements - US benchmark West Texas Intermediate crude oil futures fell as much as 1.4% and were 0.8% lower at $56.84 a barrel [1] - International benchmark Brent crude futures were 0.8% lower at $60.24 a barrel after a drop of 1.2% [1] - Oil prices are under pressure, having fallen 20% last year due to oversupply issues [2] Group 2: Venezuelan Oil Production - Venezuela has vast oil reserves, estimated at about one-fifth of the global total, but its output accounts for less than 1% of global daily oil production [2] - The country produced around 3 million barrels a day at its peak in the mid-2000s [4] - Analysts indicate that significant investment and time are required to increase Venezuelan oil production, estimating tens of billions of dollars and at least a decade of commitment from Western oil majors [3][4] Group 3: Investment and Infrastructure Challenges - President Trump announced that US oil companies will invest billions in Venezuela, but analysts caution that recovery will require substantial financial and operational improvements [3][4] - Goldman Sachs analysts noted that higher recovery rates of heavy Venezuelan oil will necessitate investments in oil-processing upgraders and improvements in infrastructure [4] - Venezuela's oil exports have already faced pressure due to a blockade imposed by Trump on sanctioned oil tankers [5]