Shares of US oil majors moved higher on Monday morning, as investors reacted to the removal of Venezuelan President Nicolás Maduro over the weekend and assessed potential opportunities for American energy firms in the country’s oil sector.
President Donald Trump has signaled that the US is seeking broader “access” to Venezuela’s oil reserves, a move the market interprets as supportive of US company involvement.
Analysts, however, have highlighted that years of underinvestment in Venezuela’s infrastructure mean substantial capital would be required to restore production and transport capacity, particularly for the country’s heavy crude grades.
Chevron Corporation (NYSE:CVX, XETRA:CHV), which is currently the only major US oil company operating in Venezuela under special authorization, drew particular attention, reflecting expectations that it is well-positioned to benefit from the political developments. Its shares were 4% higher in early trade.
Other large producers, including Exxon Mobil Corp (NYSE:XOM, XETRA:XONA) and ConocoPhillips (NYSE:COP, XETRA:YCP), as well as oilfield service firms and Gulf Coast refiners, also saw increased interest as markets priced in the possibility of new projects and expanded crude flows from Venezuela. ExxonMobil stock added 1% and ConocoPhillips was up 1.7%.