Oil n Global Economy Series: Venezuela Coup’s impact on oil

Reportedly a coup is taking place in Venezuela as self-declared President Juan Guiado, who lost to President Nicolas Maduro in the last election, but secured backing of many western countries like the United States, countries in the EU, Brazil, Columbia, and the United Kingdom called for his supporters for the removal of Maduro by means of military uprising in a video filmed near the airbase in Caracas, while standing before men in military uniform, clearly to suggest that he has the backing of Venezuelan army.

Watch live,

https://www.rt.com/news/457897-tear-gas-caracas-guaido/

Impact on oil price:

The impact on oil price could actually be negative for many reasons,

• The U.S. sanctions have already chocked oil production and according to OPEC’s March report, the production has declined to just 0.72 million barrels per day. So, not much to lose. Nevertheless, a prolonged period of violence will have a different impact in the medium term.
• Moreover, a successful coup will mean higher oil production going ahead under the new administration. A new administration coming to power while sitting on the biggest oil reserve would be very negative for the oil price.  
• A failed coup would once again lead to the status quo in the near term. At that point, the reaction from international communities would require close monitoring.