Bloomberg Daybreak: Asia Edition Oil Markets and China React to Maduro Capture
9 snips
Jan 5, 2026 
Viraj Patel, Head of Asset Allocation at Fiduciary Trust International, outlines the immediate fluctuations in oil prices following Nicolás Maduro's capture and the long-term challenges of restoring Venezuela's oil production. Alicia Garcia Herrero, Chief APAC Economist at Natixis, delves into China's strong ties with Venezuela, discussing potential impacts on investment and trade dynamics. The duo explores the broader implications of geopolitical events, including Taiwan risks, and the current resilience of the U.S. economy driven by consumer spending.
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Large Reserves, Slow Supply Recovery
- Venezuela holds large proven reserves but currently contributes only about 1% of global output due to damaged infrastructure.
- Restoring significant Venezuelan production will take years and billions of dollars of investment.
Knee-Jerk Oil Reaction Is Oversimplified
- Markets' initial knee-jerk reaction was to expect more oil supply and lower prices, but that view may be short-sighted.
- Venezuela's crude type and infrastructure needs mean any supply increase is complex and gradual.
Don’t Rush Into Venezuela Plays
- Avoid rushing into investments in firms like Chevron solely on the Venezuela event because companies were burned before and rebuilding is costly.
- Expect complex, capital-intensive projects and a slow return profile that may take years to justify re-entry.