The US closure of Venezuelan airspace over the weekend has escalated tensions, but Oil production remains largely unaffected. November Oil exports from Venezuela rose to 590,000 barrels per day, offsetting concerns over US pressure on President Maduro, Commerzbank's commodity analyst Barbara Lambrecht notes.

Oil prices largely unmoved by Venezuela-US dispute

"Uncertainty was also caused over the weekend by reports that the US government had closed the airspace over Venezuela. Tensions between the US and Venezuela had already escalated in the weeks prior to this. Trump is increasing pressure on Venezuelan President Maduro, with the measures intended to combat drug trafficking."

"So far, this have had little effect on Oil production: in October, at 950,000 barrels per day, it was only 50,000 barrels below the 5½-year high in September. New export data from the analysis firm Kpler also shows that the increased US presence in the Caribbean probably had no impact on export activity in November: at 590,000 barrels per day, exports were around 160,000 barrels higher than in October."

"It is therefore not surprising that the tensions have not had a significant impact on Oil prices so far."