Opec's Existence Under Threat as Trump Seizes Venezuelan Oil Reserves

Opec's existence is under threat due to a seismic geopolitical realignment triggered by US President Donald Trump's seizure of Venezuelan leader Nicolás Maduro and his ambition to control 65 billion barrels of Venezuela's proven oil reserves.

The event marks an ironic end for Opec, which was born as the brainchild of a nationalist Venezuelan oil minister in 1960. Trump has long been critical of Opec, blaming it for higher gasoline prices and accelerating US inflation.

Venezuela's exit from Opec is likely imminent, four months after the UAE left the group. Although Venezuela's output is only 1.2 million barrels per day, the Iran war has injected a significant geopolitical risk premium in Brent crude due to sporadic attacks on oil tankers.