New Delhi, Jan. 11 -- The US's action in Venezuela could have a major impact on the global oil market. Venezuela holds some of the world's largest proven oil reserves, but years of international sanctions have sharply constrained output.

If US sanctions are lifted following the country's invasion, it could open the tap for Venezuelan oil. While higher supply is generally positive for consumers, it's not necessarily so for oil companies.

The consensus is that even before the Venezuelan invasion, the global oil market was heading for a glut in 2026. Prices were expected to fall sharply. While it will take time for Venezuelan oil production to come back online, when it does, it will act as a major additional factor in weak oil prices. This...