The American oil company Chevron soared 5% this Monday on Wall Street after learning of US President Donald Trump’s plans to control Venezuela and reactivate that country’s oil industry.
A couple of hours before the stock market closed, in the first session after the capture of Venezuelan President Nicolás Maduro in a US military operation on Saturday, Chevron rose 5.73%, ConocoPhillips 3.54% and ExxonMobil 2.32%.
Meanwhile, SLB, a technology company dedicated to providing services in oil and gas fields, soared almost 12%.
Trump affirmed that his Government will take charge of running Venezuela until there is a political transition and affirmed that large American oil companies will invest “billions of dollars to repair the infrastructure.”
The US Secretary of State, Marco Rubio, explained yesterday that one of the objectives of the Trump Government, while leading Venezuela, will be to refine the Caribbean country’s heavy crude oil in US refineries, which could alter the price of oil.
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The US Government offered its country’s oil companies to recover assets confiscated by Venezuela in exchange for investing in the reactivation of the oil industry in that Venezuelan country, according to sources cited by Politico.
This Monday, a former Chevron executive, Ali Moshiri, who runs an investment fund, told the Financial Times that he is raising $2 billion to invest in oil projects and stated that “interest in Venezuela has gone from zero to 99%.”
Oil prices traded with volatility in this Monday’s session, although they finally opted for notable increases and experts consider that their evolution will depend on Trump’s plans in the Caribbean country.
According to the Ostrum firm, from Natixis IM, Venezuela previously “was a reserved preserve of the United States with the exploitation of oil and chemicals,” and now that country is a good “alternative” to the stagnation in the field of shale in the United States.
“If the United States takes control of Venezuela, then sanctions on oil exports will be lifted and production will resume, thus increasing the supply of oil on the world market,” said analyst Phillippe Waechter, chief economist at Ostrum.
With information from EFE
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