RE: Telegraph article5 Jan 2026 22:15
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Investors were braced for potential volatility in global markets as a result.
Ahmed Khuzaie, a political consultant from Bahrain, said: “Of course the Gulf states are worried because that will mean they will have to readjust their margins, which will affect their way of life.”
Greg Newman, the chief executive of London-based oil markets trader Onyx Capital, said: “Opec’s control of global oil supply and demand is already fragile. If the US increases Venezuelan production, this will tip the global markets into surplus, potentially with one to two million barrels a day of excess oil on top of markets that are already in long-term decline.
“Trump is very likely going to get his desired low oil prices now and even more importantly, [it will] give him considerable control over the whole global oil market and its flows.”
Oil prices dropped by 18pc in 2025 in a sign of Opec’s waning power over the market. It marked the biggest annual drop since the 2020 pandemic.
The Organization of the Petroleum Exporting Countries (Opec) was set up in 1960 with Venezuela as one of its five founding members along with Saudi Arabia, Kuwait, Iran, Iraq. It now has 12 member countries and another 10 in Opec+, including Russia.
Opec+ agreed to pause supply increases in the first quarter of 2026 at a meeting on Sunday, an attempt to support the oil price.