New Delhi, Jan. 5 -- In a stunning turn of events, the US attacked Venezuela over the weekend, captured its leader, Nicolas Maduro, and imposed a naval blockade. The chaos in the Latin American nation, once an oil-producing powerhouse, is being keenly eyed, as this event adds a "geopolitical risk premium" on energy markets.

In the initial reaction, Brent crude oil fell as much as 1.2% to $60 a barrel.

While the immediate effect is seen as limited, the change in control over Venezuela's vast oil reserves poses critical implications for heavy crude pricing and long-term supply forecasts.

Venezuela has the largest proven oil reserves with an estimated 303.8 billion barrels (as of 2020), trailed by 297.5 billion barrels from Saudi Arabia, ...