Capital Economics analyst David Oxley said that the global oil market’s oversupply and the high production costs of Venezuelan heavy crude could undermine the economic viability of large-scale investment in new oil wells. The economist noted: ““Although Donald Trump clearly wants U.S. oil companies to increase their activities in Venezuela, falling oil prices and political uncertainty will hinder efforts to develop its vast energy potential.” Capital Economics expects global oil production to exceed demand by about 3% this year, with Brent crude prices approaching $50 per barrel by year-end.Oxley emphasized: “Crucially, we have anticipated that falling oil prices will lead to a slight decline in U.S. domestic oil production by 2027, so the broader environment is unlikely to be conducive to large-scale investment in high-cost new wells in Venezuela.”