"Stock futures and oil prices edged higher on Sunday evening as investors began to digest the implications of the U.S. military raid on Venezuela that captured Nicolas Maduro. While the country has the world's largest proven oil reserves, production has been waning for years amid U.S. sanctions, mismanagement by the Maduro regime, and underinvestment. President Donald Trump said Saturday that Maduro's removal will unleash a surge of investment in Venezuela's oil industry and revive output, though analysts have said that could take years."
"Meanwhile, Venezuela's shrinking influence in the world's oil landscape has Wall Street downplaying much near-term effects from U.S. intervention there. "The physical global oil market situation remains the same. Oil prices have declined due to an oversupplied global oil market," said Rob Hummel, senior portfolio manager at Tortoise Capital Management, said in a note. U.S. oil futures rose 0.19% to $57.43 a barrel, and Brent crude climbed 0.28% to $60.92 a barrel, with both benchmarks reversing earlier losses."
A U.S. military raid captured Nicolas Maduro, prompting markets to reassess potential effects on Venezuela's oil sector. Venezuela holds the world's largest proven oil reserves but production has declined for years due to U.S. sanctions, regime mismanagement, and underinvestment. Expectations exist that removal of Maduro could attract investment and eventually revive output, but revival could take years. Wall Street views near-term global oil market fundamentals as unchanged because of an existing supply glut. OPEC+ plans to keep production steady into the first quarter. Energy benchmarks ticked up slightly while equities and safe-haven assets showed mixed moves.
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