WTI Crude Rises from Two-Week Lows Amid Venezuela Turmoil

West Texas Intermediate (WTI) crude oil bounced back on Monday, climbing from a more than two-week low as markets reacted to heightened geopolitical tensions in Venezuela. Traders weighed the impact of U.S. military intervention over the weekend, which led to the ousting of President Nicolás Maduro, and its implications for global oil markets.


Venezuela’s Oil Shock Sends Ripples Through the Market

Venezuela, home to the world’s largest proven crude reserves at roughly 303 billion barrels, has long struggled to fully exploit its resources. Despite the vast reserves, production remains well below that of major exporters such as Saudi Arabia and Russia. The recent unrest added uncertainty but is unlikely to immediately increase global oil supply, given the country’s fragile infrastructure and long-term recovery challenges.


U.S. Moves and Sanctions Keep Pressure On


The U.S. has maintained sanctions on Venezuelan crude, signaling that any potential production revival will be slow and costly. While the intervention initially stirred hopes of a market shakeup, traders are cautious, recognizing that meaningful supply changes will take time. The market’s immediate reaction reflects the tension between geopolitical headlines and real-world production realities.


Prices Rebound, But Resistance Looms


WTI traded around $58 per barrel after dipping to $56.19 earlier, showing a modest recovery. Technical barriers, including key psychological levels near $60, may cap further gains in the near term. Momentum indicators suggest a cautious stabilization, pointing to a market that is sensitive but still vulnerable to new developments.


Looking Ahead: Uncertain Terrain for Oil Traders


With Venezuela at the center of global attention, traders will monitor both geopolitical developments and broader economic signals. Supply disruptions, infrastructure challenges, and international sanctions all contribute to a fragile outlook, leaving oil markets on edge as investors navigate an uncertain landscape.