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Maduro's Ouster to Prompt Short-Term Caution in Oil Market Outlook -- Market Talk

Dow Jones01-05

0829 GMT - The U.S. ouster of Venezuela's Maduro is likely prompt only short-term caution, says Priyanka Sachdeva of Phillip Nova. The move does not alter the market's core view that ample supply and subdued demand will cap upside for oil prices into 2026, Sachdeva says. Venezuela currently produces less than 1% of global oil supply, and any meaningful increase in output would take years of heavy infrastructure investment. With oil prices hovering around $50-$60 per barrel, producers are unlikely to commit significant capital to materially change global supply in the near term, Sachdeva says. Markets remain convinced that 2026 will be an oversupplied oil market, with soft Chinese demand already largely priced in, Sachdeva adds. (kimberley.kao@wsj.com)

 

(END) Dow Jones Newswires

January 05, 2026 03:29 ET (08:29 GMT)

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