When big geopolitical headlines hit, the market often prices in the ending of the story before it’s even started. That’s exactly what’s happening with Venezuela after the U.S. arrested President Nicolas Maduro in a surprise raid earlier this month, effectively undermining the regime’s power structure.
The country holds the world’s largest proven crude oil reserves, but turning that oil into usable barrels isn’t a switch to be flipped on. It’s going to be a long rebuilding process that requires capital, contracts, infrastructure, and security — all of which take time.
