Oil prices fall back after the US capture of Venezuelan leader Maduro
[January 05, 2026] By
ELAINE KURTENBACH
BANGKOK (AP) — Oil prices fell back Monday while the prices of precious
metals surged as markets reacted calmly to the U.S. capture of
Venezuelan President Nicolas Maduro in a weekend raid.
Asian shares rallied on heavy buying of tech-related stocks after modest
gains Friday on Wall Street. The future for the S&P 500 was up 0.2%
while that for the Dow Jones Industrial Average was virtually unchanged.
In early European trading, Germany's DAX was up 0.8% at 24,728.94, while
the CAC 40 in Paris picked up 0.3% to 8,216.98. Britain's FTSE 100 edged
0.2% higher, to 9,968.71.
“While the capture of Venezuelan president Maduro by American forces has
dominated headlines, financial markets seem unperturbed,” Thomas Mathews
of Capital Economics said in a report. “We agree with the implicit view
that the near-term economic and financial implications are minor.”
Shortly after trading began Monday, U.S. benchmark crude oil rose
slightly. But it later was trading 36 cents lower at $56.96 per barrel.
Brent crude, the international standard, gave up 34 cents to $60.41 per
barrel.
After years of neglect and international sanctions, Venezuela’s oil
industry is in disrepair. It could take years and major investments
before production can increase dramatically. But some analysts expect
its current output of about 1.1 million barrels a day could double or
triple fairly quickly.
With oil levels already plentiful, crude already was trading near its
lowest level in about six months.
In any case, the U.S. move rippled through financial markets as traders
maneuvered to account for the uncertainty brought on President Donald
Trump's unusual military operation and his insistence that the U.S. will
be running Venezuela following its Maduro's ouster.
The price of gold rose 2.7% and silver jumped 6.6%.
Such assets are often considered safe havens in times of geopolitical
turmoil.
“Investors are happy to own risk, but they want insurance in the drawer.
This is confidence with a hedge, not euphoria,” Stephen Innes of SPI
Asset Management said in a commentary.
Share prices in Asia shot sharply higher.
In Tokyo, the Nikkei 225 jumped 3% to 51,832.80, its highest close since
it hit a record of 52,411.34 on Oct. 31. The index closed at a year end
high for 2025 and only resumed trading on Monday.
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A dealer walks past near the screen showing the Korea Composite
Stock Price Index (KOSPI) at a dealing room of Hana Bank in Seoul,
South Korea, Monday, Jan. 5, 2026. (AP Photo/Lee Jin-man)
 “Looking at the environment
surrounding the markets, continuously, there are various risk
factors. We must keep an eye on geopolitical risks in Ukraine, the
Middle East and East Asia, the U.S.-China trade war, monetary
policies in other countries and their development, and corporate
performance trends in Japan,” Hiromi Yamaji, CEO of the Japan
Exchange Group, said in the market's traditional New Year opening
ceremony.
South Korea's Kospi surged 3.4% to 4,457.52, a record. It also ended
Friday with a record high close.
Australia's S&P/ASX 200 closed flat at 8,728.60, while Taiwan's
benchmark climbed 2.6%.
In other trading early Monday, the dollar rose to 156.88 Japanese
yen from 156.82 yen. The euro slipped to $1.1680 from $1.1726.
This week is the first full week of the new year. It will bring
several closely watched U.S. economic updates, some of the last big
updates the Fed will see before its next meeting at the end of
January.
On the agenda are private reports on the status of the services
sector, which is the largest part of the U.S. economy, along with
consumer sentiment. Government reports on the job market will also
be released. The hope is they’ll help paint a clearer picture of how
various parts of the U.S. economy closed out 2025 and where it might
be headed in 2026.
On Friday, U.S. stocks eked out small gains to kick off the new
year.
The S&P 500 rose 0.2% and the Dow rose 0.7%. The Nasdaq composite
fell less than 0.1%, was weighed down by a 2.2% loss for Microsoft
and a 2.6% decline for Tesla, after it reported falling sales for a
second year in a row.
Nvidia, Microsoft and Tesla are among the most valuable companies in
the world and their outsized valuations give them more influence on
the stock market's direction. That includes sometimes pushing the
market up and down from hour to hour.
___
Associated Press video journalist Mayuko Ono contributed from Tokyo.
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