Venezuela Instability Plunge Oil Prices To $61 per Barrel

Global oil prices have dipped to $61 per barrel, down from over $62 amid rising instability in Venezuela. The country’s vast oil reserves estimated at 303 billion barrels or about 17% of the world’s total are fueling market concerns about supply and geopolitical risk.

Industry analysts indicate that if tensions between the United States and Venezuela continue, prices could fall further, potentially dipping below $60 per barrel.

Meanwhile, OPEC+ has paused planned production increases, a decision reaffirmed during a meeting of the eight participating countries on January 4, 2026. The group cited seasonal factors for the hold and emphasized a cautious approach to avoid market volatility.

Petroleum economist Prof. Wumi Iledare noted that the OPEC+ strategy reflects prudence rather than alarm. “The key message is flexibility. The 1.65 million barrels per day voluntary cuts can be restored gradually, in part or in full, depending on market developments. Fundamentals remain supportive. Low inventories and a steady global economic outlook suggest a broadly balanced oil market,” he said.

OPEC confirmed that any overproduced volumes since January 2024 will be fully compensated and that the return of the voluntary cuts will be managed gradually, reflecting ongoing market conditions. The organization emphasized that the decision is aimed at stabilizing the oil market while maintaining flexibility to respond to global demand.