Policy Expert Breaks Down Venezuela, Trade Implications

Policy Solutions President Jay Truitt says the U.S. capture of Venezuelan President Nicolás Maduro could have ripple effects on global oil markets and agricultural trade, particularly with China and other Central and South American countries. Truitt notes that while Venezuela accounts for only about half of one percent of the world’s oil supply, its heavy crude reserves could influence global pricing if redirected. “The whole world’s going to flex here a little bit,” Truitt said. “China is going to be hurt. I think the United States, for the most part, is largely unimpacted initially. Long term, though, think it probably could lower crude oil prices even in the United States as some of that product begins to flow in and through the U.S.” Truitt also highlighted potential impacts on U.S. agricultural trade. “I do think that the actions in Venezuela probably increase the anxiety of some of the other countries in Central and South America, one of which is a massive competitor for us on the soybean front and on the beef front. That may be a little bit concerned about how far the United States goes to chase down narco terrorists, which, for lack of a better term, that’s how they’re being defined today.”