Venezuela's Impact on Global Oil: A Limited Ripple

Crisil Ratings reports that recent events in Venezuela, including President Maduro's capture, are unlikely to significantly affect global crude oil prices due to Venezuela's small share in global supply. While India imports minimal crude oil from Venezuela, increased production could impact oil prices favorably in the long term.

Crisil Ratings has stated that the unfolding situation in Venezuela, despite its significant crude oil reserves, is unlikely to have a substantial immediate effect on global oil prices. The country's contribution to the global oil supply remains minimal, accounting for only about 1.5%.

The capture of Venezuelan President Nicolas Maduro by U.S. forces recently sent ripples of uncertainty, yet Crisil maintains that even major disruptions in Venezuela's oil production will not drastically alter global pricing.

For India, the impact is negligible. Venezuela represents less than 0.25% of India's imports, predominantly crude oil. Despite India's heavy dependency on oil imports, Crisil predicts no immediate price impact but sees potential long-term benefits should Venezuela ramp up production.

(With inputs from agencies.)