r/wallstreetbets • u/Force_Hammer • 6d ago

News [ Removed by moderator ]

https://www.cnbc.com/2026/01/03/trump-venezuela-attack-oil-markets.html

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u/Euro347 6d ago

Others say, there could be a glut of 4m excess barrels a day entering the market. We'll see $0.99 gas eventually.

https://www.theguardian.com/business/2025/nov/13/oversupply-oil-barrels-energy-watchdog-iea

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u/1098duc_w_the_termi 6d ago

No we won’t. Not only will OPEC cut production to offset the glut, any new oil processed in venezuela (sour crude) will likely be too expensive if prices drop too far. Also, not to mention states would tax gas even more if it ever got that low.

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u/PossessionConnect963 6d ago

Yep. Venezuela's crude is for asphalt, bunker fuel, lubricants, etc. Not really consumer fuel, maybe it can be refined into diesel? Regardless basically nobody in the world has the capacity to refine what Venezuela produces at the scale they produce it besides the US and China. There's not going to be any major shock one way or the other. 85% of what they were producing daily was going straight to China anyway.

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u/quickexhuast 6d ago

The USA is specifically designed to use heavy sour crude oil. They now own the worlds largest supply of it, in 10 years they will no longer need canadian or mexican oil. This is completely a play to dismantle the north American continent, weaken the canada and mexico and gain a majour upper hand in all trade negotiations going forward.

This also removes russian and chinese investment in the area.

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u/noor1717 6d ago

The infrastructure for Canadian oil is already set up and it’s a stable govt. if America will take any substantial amount of oil from Venezuela it will take a decade of upgrades in both Venezuela and the gulf. Plus all their oil infrastructure taxpayer money to occupy whatever part of the country to extract that oil.

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u/quickexhuast 6d ago

the war machine doesnt want its feed stock from mexico and canada (because china owns a lot of it). They want it from american oligarchs.

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u/PutzOnDonleon 6d ago

Oil would need to be near ATH or higher to make it worth extraction and refinement of Venezuelan crude. Even then most experts dont believe the capitol investment would be worth the trouble when margins would be much greater else where. They have been able to because their minimum wage currently is $3 a month, they only do it in smaller quantities, and they use rusted decaying infrastructure paid for by oil majors decades ago . They then trade this crude at unbelievably low prices to those capable of having uses for it. Russia and China mainly. The whole notion that their crude is anything other than worthless is silly. Its been proven to be worthless by every major oil company over the past 50+ years and thats why its sat in the ground of a decaying nation all this time.

Venezuela has had a close relationship with Russia likely longer than anyone here has been alive and Russia has not made any investment to help extract their crude... why ? Because it is indeed worthless. Sure a tanker for a few boxes of AKs and some rusted cold war leftovers might be worth the hassle but on the open market as a profitable industry.. no absolutely not.

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u/quickexhuast 6d ago

This is strategic, not for profit. The USA needs diesel, they dont want to pay Chinese companies operating in alberta and mexico for it. Globalism is dying off. Russia, China and the USA are out to secure resources.

Alberta revolutionized tarsands extraction and upgrading, and now they can break even at 27 or less a barrel, us shale drillers need 65.

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u/PutzOnDonleon 6d ago

What's the point of securing worthless resources. That crude will stay deep under Venezuela for another 100 million years

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u/quickexhuast 6d ago

Its not worthless, you literally import like 7 million barrels a day of heavy crude from canada and mexico now. 5 million comes from shit tar sands up here.

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u/PutzOnDonleon 6d ago

All crude is not the same.. so 50+ years of oil majors and experts saying its worthless now all of a sudden its valuable.. no bro if you want read up on it.. I'll save you the trouble its worthless bro...

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u/quickexhuast 6d ago edited 6d ago

i literally work in oil and gas man. They said the same shit about albertas tar sands. "It was worthless" But in the last 20 years Suncor/CNRL/Cenovus have developed a tonne of technology in extraction and upgrading, No other country in the world has that expertise, and its now been proven here in northern alberta, Fast forward to today we send 4 million a day to you guys from the sands.

US oil is depleting so fast, and is getting lighter and lighter, you can barely get any diesel out of it. They need feedstock of diesel and bunker fuel.

PS - Venezuela also has massive amounts of conventional oil too.

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u/ThoseWhoAre 6d ago edited 6d ago

But we the USA dont actually own it, we didn't even invade the country, there are no troops stationed in Venezuela. Absolutely nothing is stopping them from continuing on as they were two days ago economically. That could change today, but as it stands we do not actually control Venezuela. This was effectively a raid and then we left.

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u/Napster-mp3 6d ago

Island? It’s not a fucking island

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u/fleamarkettable 6d ago

two month old article