US oil companies logged solid gains of up to 10% in pre-market trading on Monday, January 5, after the US military captured Venezuelan President Nicolas Maduro, resulting in his ouster.
US President Donald Trump also announced that the US plans to “run” Venezuela, and that the US oil companies will invest an unspecified amount to revive the oil infrastructure in the South American nation and increase its oil output, enabling higher crude flows to the US and other markets.
Against this backdrop, Chevron Corp gained as much as 10%. While ConocoPhillips, Valero and Exxon Mobil Corp. also rose up to 8%. Shares of Phillips 66, Occidental Petroleum, EOG Resources and Devon Energy emerged as other top gainers, with up to 5% gain.
Meanwhile, the report also added that ConocoPhillips is owed more than $8 billion by Venezuela and Exxon is still owed about $1 billion stemming from the nationalisation of their Venezuelan assets in the early 2000s, as ruled by international arbitrators.
Sandeep Panday of Basav Capital told Mint that the US attack on Venezuela would benefit a good number of US oil companies, especially Chevron Corporation, as it is the only US oil company which is operating in Venezuela. Furthermore, he sees Exxon Mobil as the next big beneficiary, as it has operations in Venezuela, increasing the possibility of the company receiving a project quickly.
