Markets are closely monitoring the potential impact on commodity prices following US airstrikes on Venezuela, as the South American nation holds significant reserves of oil, natural gas, and iron ore, along with the largest gold holdings in Latin America.
Venezuela has the world's largest oil reserves but its crude output remains at a fraction of capacity due to mismanagement, lack of investment and sanctions, official data shows.
The country holds about 17 percent of global reserves or 303 billion barrels, ahead of Organization of the Petroleum Exporting Countries leader Saudi Arabia, according to the London-based Energy Institute.
Based on an oil price of around US$57 (HK$444.27) per barrel, Venezuela's oil reserves are valued at about US$17.3 trillion.
Previously, the US President Donald Trump said that American oil companies were prepared to tackle the difficult task of entering Venezuela and investing to restore production in the South American country.
"We're going to have our very large US oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, oil infrastructure, and start making money for the country," Trump said.
The US has gained oil reserves worth more than the combined gross domestic product of every country in the world excluding the US and China in just 12 hours, a report of The Kobeissi Letter said, adding that the oil market's reaction in the coming days will be crucial.
Beyond oil, Venezuela owns 161 metric tons of gold reserves, which is equivalent to 5.13 million troy ounces, with a value surpassing US$22 billion for US$4,300 per ounce.
Its gold resources of 8,000 tons also underscored its leading position in Latin America.
If the US ultimately takes control of these relative resources, it will bring billions of dollars in income, the report said.
Besides, there are 200 trillion cubic feet of natural gas reserves, 4 billion tons of iron ore worth at nearly US$60 billion, and over 500 million tons of coal in Venezuela.
Staff reporter and Reuters
