🇺🇸🇻🇪 U.S. – Venezuela: Market Impact
Breakdown
This isn’t about politics or morality.
Markets don’t trade beliefs — they trade consequences.
The real issue here is heavy oil.
Venezuela holds roughly 303 billion barrels of oil, the largest reserves on the planet. Most of it is heavy crude — costly to extract, complex to process, and highly dependent on infrastructure.
Years of sanctions didn’t remove the oil. They removed: • Infrastructure
• Capital
• Production capacity
Reserves stayed. Output collapsed.
Meanwhile, the United States: • Operates 6 of the world’s largest heavy-oil refineries (mainly in Texas & Louisiana)
• Increased heavy-oil imports from ~15% in 1980 to nearly 70% today
The alignment is obvious.
If U.S. energy majors re-enter, repair infrastructure, and scale production: • Corporate profits increase
• Government tax revenues rise
• U.S. energy security improves
Markets will price this long before politics reacts.
Capital moves first. Policy follows.
That’s how markets work.
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