Chevron and other energy stocks soared Monday morning, though oil prices barely budged, after the US captured Venezuelan dictator Nicolás Maduro and President Trump said American companies would tap into the nation’s rich oil reserves.
Shares in Chevron, which is the only major US oil company currently operating in Venezuela, jumped 4.8%.
ConocoPhillips and Exxon Mobil – both of which left Venezuela nearly 20 years ago when Maduro’s socialist predecessor, Hugo Chávez, nationalized their assets – also rose 5.3% and 2.4%, respectively.
Brent crude oil futures fell about 2% before recovering Monday morning, trading around $61 a barrel. US futures for delivery later this month ticked up 0.4%, trading around $58 in New York.
Trump vowed American drillers would be closely involved in rebuilding Venezuela’s oil infrastructure.
But oil markets were muted as energy traders braced for challenges in ramping up Venezuelan oil exports – particularly sanctions put in place to pressure Maduro’s regime.
Even if sanctions are eased, analysts have warned it could take years to significantly increase global exports of Venezuelan oil.
“Increased supply, over time, almost always leads to lower prices…Fewer shocks. Fewer lines. Fewer moments where energy suddenly dominates every conversation,” Mark Malek, chief investment officer at Siebert Financial, said in a note Monday.
“The short term, however, will not be smooth. Supply quarantines, transitional control issues, legal uncertainty and infrastructure decay guarantee noise.”
Global defense stocks also jumped Monday as Trump’s capture of Maduro and his wife – who are facing charges like narco-terrorism conspiracy in federal court in New York – raised concerns around heightened geopolitical tensions.
Here’s the latest on Nicolás Maduro’s capture:
Shares in US firms Northrop Grumman and Lockheed Martin rose 2.7% and 3.3%, respectively.
In Germany, arms maker Rheinmetall rose 8%. The UK’s BAE Systems and Italian defense firm Leonardo also increased 4% and 6%, respectively.
Gold futures rose about 2.5% on Monday to $4,438.70 as investors flocked to safe-haven assets. Silver futures also rallied about 7.5% to $76.43.
Investors often buy gold as a hedge against inflation and economic uncertainty due to its capacity to hold value even as other assets fall.
Gold marked its best annual performance last year since 1979 – soaring more than 60% and notching an all-time high of $4,549.71 last month.
Anxiety around Trump’s tariffs and their potential to cause inflation, high interest rates, a weaker US dollar, a record-breaking government shutdown, mixed economic data and central bank buying all contributed to gold’s explosive rise.
Meanwhile, the S&P 500 rose 0.6% as investors shrugged off concerns that the US raid on Venezuela could worsen political tensions. Energy stocks led the rally.
