Uncertainty swirls in Venezuela
January 5, 2026
The U.S. intervention in Venezuela has most everyone’s attention. And of course, the main headline we’ve all seen is that Venezuela has the largest proven oil reserves in the world. At this point, there are more questions than answers about what this all looks like moving forward.
Specifically for energy, at this point, it is another fear to add to the geopolitical news. Venezuela’s oil industry will require massive investment, and a stable government will be needed to see that process begin. So, additional production out of Venezuela is a way off in the future.
Near-term traders will be watching for any escalation in the situation in Venezuela. JP Morgan commented that a regime change in Venezuela would immediately represent one of the most significant upside risks to the global oil supply outlook for 2026-2027 and beyond. This is all driven by the uncertainty surrounding this whole ordeal. Many more unknowns have been tossed into the market for traders to figure out.