Why Venezuela’s Vast Oil Wealth Couldn't Prevent Its Collapse

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Why This Matters

Venezuela's oil reserves, the largest in the world, have failed to prevent the country's economic collapse due to technical, legal, and political decisions that have dismantled its oil industry over two decades.

Market Impact

Market impact analysis based on bearish sentiment with 90% confidence.

Sentiment
Bearish
AI Confidence
90%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

The dramatic events over the weekend in Venezuela have renewed global attention on a country that, on paper, should be one of the world’s great energy powers. Venezuela holds the largest proven oil reserves on Earth, yet its oil industry has been in long-term decline for two decades. Understanding why requires looking past the headlines and into the technical, legal, and political decisions that steadily dismantled what was once a cornerstone of the global petroleum system. The United States confirmed that Venezuelan President Nicolás…

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Original article published by OilPrice.com on January 8, 2026.
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