Oil prices slumped in European trade on Monday after the U.S. over the weekend captured Venezuelan President Nicolas Maduro and said it was taking control of the Latin American country.

Brent oil futures fell 0.9% to $60.20 a barrel by 04:14 ET (09:14 GMT), while West Texas Intermediate crude futures dropped 1.0% to $56.77 a barrel.

Prices had risen as much as 0.5% earlier in the day, but pared most early gains.

Oil prices were nursing an over 18% slide in 2025, their worst in five years, as fears of a supply glut and weakening demand battered crude markets.

Find out Wall Street’s top energy stock picks for 2026 by upgrading to InvestingPro. Get over 50% off today

U.S. captures Venezuela’s Maduro, Trump touts oil takeover
Maduro is now set to face drug-trafficking charges in New York.

U.S. President Donald Trump said that Washington will run Venezuela until a new leader is elected, and that as part of the incursion, major U.S. oil companies will be allowed to oversee much of its oil production.

Venezuela has the largest proven oil reserves in the world. But output in the country has faltered due to aging infrastructure, while crippling U.S. sanctions limited its exports.

Analysts said that U.S. control of Venezuela’s oil was likely to increase global supplies, which could in turn weigh further on crude prices, although such a scenario was likely to take time.

“If the sudden events in Venezuela could be distilled into one market conclusion, it would be future oil supply […] especially as oil and gasoline prices may drop sharply,” Ben Emons, chief investment officer and founder at Fed Watch Advisors said in a note.

Emons noted that U.S. gasoline prices were likely to fall with more Venezuelan production, a scenario that could provide Trump with a boost in popularity going into midterm elections later in 2026.

But Emons also noted that such a scenario will “take a while,” given the time taken to upgrade and build out more oil facilities in Venezuela.

In a note, Warren Patterson, Head of Commodities Strategy at ING said that statements from Venezuelan Vice President Delcy Rodriguez calling for the country and the U.S. to work together suggest that a “smooth transition” may be ahead despite the recent upheaval.

This would increase the likelihood that the U.S. will lift its blockade of sanctioned oil tankers entering and leaving Venezuela, putting possible short-term downside pressure on oil prices, Patterson argued.

However, a “messier transition” could place roughly 900,000 barrels per day of oil supply from Venezuela at risk, Patterson said. Some upside risk could be in play then, although this is likely to be limited in an already “well-supplied” market, Patterson added, forecasting that Brent prices will average $57 per barrel this year.

OPEC+ leaves production unchanged amid increased tensions
Meanwhile, markets were also digesting a weekend decision by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to leave production unchanged.

The group reached the decision after a quick meeting that did not address heightened tensions between some of the cartel’s members, reports said.

Tensions between Saudi Arabia and the UAE surged in late-December amid an escalation in a long-running conflict in Yemen. OPEC+ raised production steadily through 2025, adding to market concerns over a supply glut and downward pressure on oil prices.
Source: Investing.com