Venezuela’s crisis poses India a challenge of oil diplomacy as it tries to secure its energy interests

Global markets do not price commodities based on today’s supply alone, but also on the perceived risk of tomorrow’s disruptions. After the US ‘capture’ of Venezuela’s president Nicolás Maduro, global market prices have been largely stable, thanks to over-supply and the country’s low share of overall output, but an ‘uncertainty premium’ may start getting priced in should a power vacuum in Caracas threaten instability beyond Washington’s ability to contain.