Devastating earthquake in Venezuela
The clouds of crisis are deepening over the South American country Venezuela. This crude oil-rich country, which had been facing the economic crisis for a long time, first saw political upheaval. America captured President Maduro and now there has been a terrible earthquake. Venezuela has become a story of tragedy and change at this time, with political turmoil, a collapsing oil-based economy and now a devastating natural disaster. All three have collided together. The evening of 24 June 2026 was no less than a disaster for Venezuela. Two massive earthquakes occurred back-to-back in the western part of the country. According to the USGS, the first aftershock was of 7.2 magnitude and the main aftershock that occurred exactly 40 seconds later was recorded at 7.5 magnitude. Amidst all these news, it has to be understood that there is a reserve of crude oil here. In such a situation, will these earthquake shocks cause a boom in the global oil economy? Let us understand this in detail.
Data shows that this earthquake in Venezuela is the worst in 126 years. This most severe earthquake has shaken a large part of the country including the capital Caracas. Buildings collapsed like cards, roads were destroyed and the country’s main airport and infrastructure was seriously affected. This natural disaster has hit Venezuela at a time when it is already going through the largest political and economic transition in history.
Venezuela’s crisis, a look at the timeline
Nature is wreaking havoc on Venezuela. But apart from this, the situation there has not been good for the last decade.
- 2014 – 2024- Due to fall in oil prices and mismanagement, there was severe inflation in the country. There was a severe shortage of basic things like food and medicines.
- 2018 – 2025- Fed up with economic crisis and starvation, about 70 to 80 lakh people of Venezuela were forced to leave the country and take refuge in neighboring countries and America.
- January 2026- The year 2026 started with a major earthquake. The US Army took the then controversial President Nicolas Maduro into custody by running a special military operation Operation Absolute Resolve. After Maduro’s removal, Vice President Delsey Rodriguez took charge of the country as interim president.
- February – May 2026- The new interim government improved relations with America. Restrictions on oil fields were eased, due to which Venezuelan oil production started coming back on track and it reached the level of 12.5 lakh barrels per day (bpd) in April-May 2026.
- 24 June 2026- Just when the economy and political situation seemed to be improving, a double earthquake of 7.2 and 7.5 magnitude devastated the infrastructure of the entire country.
Will Venezuela’s earthquake increase crude oil prices?
Venezuela is the country with the world’s largest proven oil reserves. It has more oil reserves than Saudi Arabia. In such a situation, any disaster that occurs there directly puts the global oil market on alert. The fear of oil prices rising.
What effect this earthquake will have on crude oil prices can be understood in three points-
1. Damage to supply chain and export infrastructure- The epicenter of the earthquake was near the coastal areas west of Caracas. There is a possibility of damage to refineries, pipelines and most importantly oil exporting ports due to this shock. If the process of oil loading in ships is disrupted, the oil supply in the global market may be affected.
2. Panic in the global market- Commodity market always works on fears. Even if there is no direct damage to the oil wells, the fear of supply interruption can lead to an immediate rise in crude oil prices. However, till the time of writing this news, crude prices have fallen. But how the market takes this sentiment will be known gradually.
3. Break on recovery- Venezuela was continuously increasing its oil production for the last 3 months. In May 2026, it touched the figure of 12.5 lakh barrels per day, which was the highest since 2018. Due to power crisis and breakdown of roads after the earthquake, there can be a huge decline in this production, which will increase the shortage of crude oil at the global level.
What is the oil trade between India and Venezuela?
India is the third largest crude oil importer in the world and buys about 85 percent of its oil requirement from abroad. Venezuela has always been an important oil supplier to India. Oil trade between India and Venezuela was at its peak in the year 2018, when India bought oil worth about Rs 70 thousand crores. However, after this there was a huge decline in trade due to strict US sanctions. Between 2021 and 2023, it came down to an average of 1.1 to 1.2 billion dollars. The shadow of sanctions remained in place even in 2025, due to which Indian refineries drastically reduced purchases. The result was that India’s imports fell to a low of just $639 million (1.54 million tonnes) in 2025. According to Moneycontrol report, Venezuela’s exports to India will become almost zero around April-May in the year 2025.
What will be the impact of Venezuela crisis on India?
India imports about 85 to 90 percent of its crude oil requirement from abroad. In such a situation, if oil supply is affected in any corner of the world, it directly impacts India’s pocket.
This latest crisis in Venezuela can affect India in two ways-
1. Search for alternative sources- In recent months, due to the ongoing tension in the Middle East and the Red Sea crisis, India had increasingly turned to Venezuela to secure its oil imports by moving away from the Gulf countries. If oil supply from Venezuela stops or reduces, then Indian refining companies like Reliance and ONGC will again have to run to other countries like Russia or Africa, which will increase competition and make oil costlier.
2. Direct impact on Indian customers- Due to increase in crude oil prices in the global market, the import bill for crude oil will increase for India. Its direct result can be seen in the form of increase in the prices of petrol, diesel and LPG in the domestic market. Due to cost of oil, freight transportation becomes expensive, due to which vegetables, fruits and everyday items also become expensive for the common man.
Venezuela’s troubles
Venezuela is currently facing a two-pronged attack. On one hand, after the end of the Maduro era, the country was trying to take its economy out of the ventilator-like situation with the new political system under the leadership of Delsey Rodriguez and American cooperation, on the other hand, the biggest earthquake of this century has pushed the country back.
If Venezuela’s oil infrastructure is found to be seriously damaged in this earthquake, its impact on crude oil prices in the global market can be seen in the coming weeks of June and July 2026. This situation is worrying for India because it will not only challenge India’s energy security but can also create new inflationary pressure in the domestic market. In the next few days, satellite images and statements from Venezuela’s Energy Ministry will make it clear how deeply this world’s largest oil well has been hit.
Also read- 2 tremors of more than 7 intensity, fear of 10 thousand deaths, biggest earthquake in Venezuela in 126 years
