US oil firms saw a sharp rise in pre‑market trading on Monday after the US moved to take control of Venezuela’s oil assets.
What triggered the rally?
The US military captured Venezuelan President Nicolás Maduro, leading to his removal. President Donald Trump then announced that the United States plans to run Venezuela’s oil sector and that US oil companies will invest to rebuild the country’s oil infrastructure. The news sparked strong buying interest in US energy stocks.
Top gainers
- Chevron Corp: rose as much as 10%.
- ConocoPhillips, Valero Energy and Exxon Mobil: each climbed up to 8%.
- Phillips 66, Occidental Petroleum, EOG Resources and Devon Energy: gained up to 5%.
Why Chevron leads the pack
Chevron is currently the only US oil company still operating in Venezuela. With the US taking over the country’s oil reserves, analysts expect Chevron to receive new contracts quickly, giving it a clear advantage over peers.
What investors should watch
Other US majors such as Exxon Mobil and ConocoPhillips still have old claims against Venezuela from past nationalizations. If the US government awards new projects, these companies could also see a boost. However, investors should keep an eye on political risks, the timeline for rebuilding facilities, and any regulatory changes that could affect the flow of crude to the US and global markets.
Remember, this is perspective, not a prediction. Do your own research and consider consulting a qualified financial advisor before making any investment decisions.