"Burry, who correctly predicted the subprime mortgage crisis in 2008, said Russia may face consequences after the U.S. toppled Venezuelan President Nicolás Maduro early Saturday, the investor wrote in a post on his Substack newsletter, Cassandra Unchained. Shortly after Maduro's capture, President Donald Trump said the U.S. would be more involved with the country's abundant oil reserves. He put the onus on U.S. oil companies to improve Venezuela's oil infrastructure with billions of dollars of investment"
"Because it has the world's largest reserves, increasing its oil output could affect the commodity's price globally, said economist and Boston College associate dean Aleksandar Tomic. If oil prices drop due to increased global supply via Venezuela, Russia may be weakened because oil is its "lifeline," he told Fortune. Despite U.S. sanctions, Russia exports oil to countries such as China and India."
Michael Burry linked the U.S.-led removal of Nicolás Maduro to potential consequences for Russia by increasing Venezuelan oil exports. President Donald Trump expressed intent to mobilize U.S. oil companies to invest billions to rebuild Venezuelan oil infrastructure, with full production gains expected in five to seven years. Venezuela holds roughly 19% of global oil reserves—about 300 billion barrels—yet produces far below capacity due to poor infrastructure, mismanagement, and sanctions. Economists warn that added Venezuelan supply could lower global oil prices, weakening Russia economically because oil revenues fund its war and constitute about 20% of its GDP.
Read at Fortune
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