Maduro’s Capture in Venezuela Pressures Oil Prices as CAD and NOK Weaken

The Canadian dollar and the Norwegian krone weakened on Monday as oil prices fell following a U.S. military operation over the weekend that resulted in the capture of Venezuelan President Nicolás Maduro.

Market reaction was driven by concerns that Venezuela’s vast crude oil reserves could eventually translate into higher production levels, increasing global supply and putting downward pressure on oil prices.

Analysts noted that, alongside recent increases in production from Russia and the United States, the prospect of higher long-term output from Venezuela adds to the downside risks for oil prices in the years ahead.

Both the Canadian dollar and the Norwegian krone are particularly sensitive to movements in oil prices, as Canada and Norway are major oil-exporting economies. As a result, declines in crude prices tend to weigh directly on their currencies.