0853 GMT - Global oil-market balances are unlikely to be significantly affected by U.S. actions in Venezuela over the next year, says Giovanni Staunovo of UBS. "Any recovery in production would require substantial investment given the neglected infrastructure resulting from years of mismanagement and underinvestment," the strategist says. "It remains unclear which companies would be willing to invest in Venezuela at current oil prices, especially amid ongoing political, security and legal uncertainties." However, UBS notes that if the U.S. lifts its embargo on Venezuelan oil--which has recently depressed production and exports--there could be a modest rebound toward pre-embargo levels. The bank expects the market to remain in surplus into early 2026, narrowing as the year progresses, with Brent projected at $62 a barrel at the end of the first quarter, $65 at midyear, and $67 by year-end. (giulia.petroni@wsj.com)
(END) Dow Jones Newswires
January 05, 2026 03:53 ET (08:53 GMT)
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