Source The Hindu
CARACAS / NEW YORK – Global oil prices retreated on Monday as financial markets reacted with surprising calm to the weekend’s dramatic military operation by United States forces, which resulted in the capture of Venezuelan leader Nicolás Maduro.
After an initial spike in early trading, crude prices fell back as investors bet that the removal of the Maduro administration could eventually unlock the world’s largest proven oil reserves. By Monday afternoon, the global benchmark Brent crude was down 34 cents to $60.41 per barrel, while the U.S. benchmark, West Texas Intermediate (WTI), traded 36 cents lower at $56.96.
“Operation Absolute Resolve” and Market Stability
The downturn in prices comes just two days after the U.S. military launched “Operation Absolute Resolve,” a pre-dawn raid on January 3, 2026, targeting a compound in Caracas. The elite Delta Force unit successfully seized Maduro and his wife, Cilia Flores, who were subsequently flown to New York to face charges of narco-terrorism and cocaine trafficking.
While geopolitical shocks typically send oil prices soaring, analysts suggest several factors are keeping the market “unperturbed”:
Existing Oversupply: Crude was already trading near six-month lows due to high production levels globally.
Infrastructure Disrepair: Experts warn that Venezuela’s nationalized oil industry, PDVSA, is in such disrepair that it will take years of major investment before production can significantly increase.
Policy Clarity: President Donald Trump’s announcement that U.S. oil companies would assist in managing the transition has provided a roadmap that investors view as potentially bearish (price-lowering) for oil in the long term.
“While the capture of Mr. Maduro has dominated headlines, financial markets seem to view the near-term economic implications as minor,” said Thomas Mathews, an economist at Capital Economics. “The focus has already shifted to how quickly U.S. majors can restore production.”
Legal and Political Uncertainty
Despite the market’s calm, the political situation remains volatile. In a Manhattan federal court on Monday, a defiant Maduro pleaded not guilty, telling the judge, “I am still the president of my country.”
In Caracas, Vice President Delcy Rodríguez has been ordered by the Supreme Tribunal of Justice to assume the presidency. While she initially denounced the capture as a “kidnapping,” recent reports suggest she has expressed a tentative willingness to work with Washington to maintain order.
Global Economic Reactions at a Glance
Asset Change Current Price
Brent Crude -0.56% $60.41
WTI Crude -0.63% $56.96
Gold +2.7% Safe-haven surge
Nikkei 225 +3.0% 51,832.80 (Record high)
While oil prices dipped, “safe-haven” assets like gold and silver saw significant gains as some investors remain wary of the unprecedented nature of the U.S. military intervention in a sovereign state.
