‘US strike on Venezuela may push up fuel prices’

MANILA, Philippines — Domestic pump prices could climb higher than expected next week as oil markets reel after the United States bombed Venezuela and captured its authoritarian left-wing leader Nicolas Maduro.

“The geopolitical risks due to the recent events in Venezuela could push premiums and freight rates higher, which may cause next week’s local oil prices to rise more than initially estimated,” Jetti Petroleum president Leo Bellas told reporters yesterday.

Bellas said the suspension and paralysis of Venezuela’s oil exports may drive global oil prices amid worries over supply disruptions.

“This new geopolitical risk will keep prices volatile as markets digest the longer-term effects on global supply due to the loss of Venezuelan crude flows,” he noted.

In a social media post over the weekend, US President Donald Trump said the US “successfully carried out a large-scale strike against Venezuela,” adding that Maduro and his wife were “captured and flown out of the country.”

Maduro, who had led Venezuela since 2013, is set to face federal drug and weapons charges in New York.

“Still wait-and-see on how the world oil market price reacts on Monday, Jan. 5, upon resumption of global financial markets trading since this happened over the weekend,” economist Michael Ricafort said.

Venezuela, a member of Organization of the Petroleum Exporting Countries (OPEC) with substantial oil reserves, produces around 800,000 barrels per day and accounts for less than one percent of global oil output.

“The world watches how other world powers react, such as China – the biggest buyer of Venezuela’s oil – which condemned the US military strikes on Venezuela,” Ricafort said.

Earlier, oil industry experts said initial estimates indicated a potential price increase of P0.20 to P0.40 per liter for diesel and up to P0.10 per liter for gasoline next week.