'Big Short' investor says Venezuela's regime change means Russia’s oil ‘just became less important’
Fortune••business
Key Points:
- Investor Michael Burry, known for predicting the 2008 subprime mortgage crisis, suggested that the U.S. overthrow of Venezuelan President Nicolás Maduro could weaken Russia by increasing Venezuelan oil production and reducing Russia’s oil revenue and influence.
- Venezuela holds about 19% of the world’s oil reserves but currently produces far less due to infrastructure issues, mismanagement, and sanctions; boosting its output could lower global oil prices and impact Russia, whose economy heavily depends on oil revenues.
- While President Trump indicated U.S. involvement in Venezuela’s oil sector and encouraged American companies to invest in upgrading infrastructure, details on the U.S. role and future Venezuelan leadership remain unclear, with Vice President Delcy Rodriguez sworn in as interim president.
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