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Oil prices rose at settlement on Monday
after a volatile session, as investors shrugged off any potential impact on oil flows following the arrest of Venezuelan President Nicolas Maduro by U.S. forces and President Donald Trump's announcement that Washington would take control of the country, which holds the world's largest proven oil reserves, exceeding 300 billion barrels.
Brent crude futures rose 99 cents, or 1.63%, to settle at $61.74 a barrel.
U.S. West Texas Intermediate crude futures gained $1, or 1.74%, to settle at $58.32 a barrel.
Both benchmarks rose by more than a dollar in midday trading after falling by more than a dollar earlier in a volatile session, as investors assessed the news of the U.S. arrest of the Venezuelan president and its declaration of control over the OPEC member, whose oil exports remain subject to U.S. sanctions.
Two sources at Venezuela's state-owned oil company, PDVSA, said earlier this week that the US attack on Venezuela to oust the president had not disrupted the country's oil production and refining operations, according to Reuters.
Venezuela, a founding member of OPEC, has the world's largest proven crude oil reserves, at 303 billion barrels, or 17% of total global reserves, according to the US Energy Information Administration.
Caracas produced around 3.5 million barrels per day at its peak in the late 1990s, but production has declined significantly since then, according to energy consultancy Kpler. Kpler data indicates that the South American country is currently producing around 800,000 barrels per day.
Chevron is the only major US oil company operating in Venezuela. According to Kpler, Venezuela was exporting around 140,000 barrels per day by the end of the fourth quarter of 2025.
Dan Stroeven, head of oil research at Goldman Sachs, said the impact of Maduro's ouster on oil prices is unclear in the near term. In a note to clients on Sunday, Stroeven added that production could rise slightly if a US-backed government is installed and the Trump administration lifts sanctions on Venezuela.
Since Trump's decision to blockade sanctioned oil tankers passing through Venezuelan waters and seize two shipments last month, exports have declined and then ceased entirely since January 1.
The blockade has resulted in millions of barrels piling up on tankers in Venezuelan waters, and millions more entering storage facilities there.
