FX.co ★ Oil Slips After US Attacks Venezuela

WTI crude futures declined towards $57 per barrel on Monday, marking a third consecutive session of losses as investors evaluated the consequences of the US operation in Venezuela and the apprehension of President Nicolas Maduro. The markets are considering the potential effects on regional crude supply, in light of Venezuela's status as holder of the world's largest proven oil reserves. However, some analysts predict minimal disruption, highlighting Venezuela's current production of under 1 million barrels per day, which constitutes less than 1% of the global output. Conversely, there is caution that oil prices might increase later this year due to concerns over intensified US pressure on global adversaries, such as Iran, which could lead to tighter supply conditions. At the same time, reports suggest the White House is encouraging US companies to assist in reviving Venezuela's oil industry as a potential route for reclaiming assets expropriated by the nation nearly two decades earlier.