New Delhi, Jan. 4 -- Energy markets brace for a supply shock as Washington moves to run Venezuela's oil trade, threatening to overwhelm OPEC's production strategy.

WASHINGTON - The global oil market is bracing for what could be the most significant non-OPEC supply surge in recent history, as the United States moves to seize control of Venezuela's oil production following the capture of President Maduro and his wife on Saturday. Analysts warn that OPEC may face a new challenge in balancing global supply and demand as Venezuela's output is poised to rise under US management.

"OPEC could be overwhelmed by a new wall of non-OPEC supply that's coming to the market," said John Kilduff, partner at New York energy hedge fund Again Capital and a...