"The impact of the news seems to be minimal at this point in time, but some speculation and risk has been priced into oil futures," Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore, told AFP.
"Chavez has been in this position for so long, so there is a risk embedded in the political transition that could result in a disruption of oil supply."
Jason Hughes, head of premium client management at IG Markets Singapore, said the full impact of the left-wing leader's death has yet to be felt but traders are watching for signs of instability within OPEC member Venezuela.
Venezuela has the world's largest proven oil reserves, according to the Organization of the Petroleum Exporting Countries (OPEC).
"There is a potential for instability in the country," Hughes said.
The government says Venezuela produces three million barrels of oil per day, although OPEC says the figure is 2.3 million. Oil production accounts for 90% of the country's hard-currency revenue.