U.S. capture of Venezuela leadership shakes markets, but defense, tech and healthcare look set to gain. Meanwhile, oil impact stays muted for Chevron.
Charles Myers, chairman of the consulting firm Signum Global Advisors, is planning a trip to Venezuela with potential investors in March. Myers called the situation a "major infrastructure play" that "could be as big as $500 billion over the next 10 years.
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 United States is seeking broader “access” to Venezuela's oil reserves, a move the market interprets as supportive of US company involvement.
Chevron Corporation is upgraded to Buy, driven by its unique first-mover advantage in Venezuela's oil sector. CVX's potential to reclaim assets and expand reserves by 20–30 years positions it as a future-proof supermajor. Risks include $110B in infrastructure costs, possible FCF dilution, and oil price pressure from new supply.
Energy stocks are on the rise today, after the U.S. military captured Venezuelan leader Nicolás Maduro and his wife over the weekend.
Investors are digesting the news from over the weekend that Venezuelan President Nicolás Maduro no longer is in charge of the South American nation. Early returns are promising for energy firms.
While speaking to reporters onboard Air Force One on Sunday night, Trump said the U.S. was “in charge” of Venezuela and is prepared to carry out another strike if the interim government does not behave.
Investors bet the attack on Venezuela, and the capture of leader Nicolas Maduro, would not lead to a bigger geopolitical conflict. Geopolitical shocks historically have had little lasting impact on the stock market.
The geopolitical implications of President Trump's controversial weekend attack on Venezuela and the capture and extradition of its president, Nicolás Maduro, are still being digested by legal and security experts in the two days following the shocking announcement.
U.S. oil companies' shares rose in premarket trading on Monday as investors bet that President Donald Trump's move against Venezuela's leadership would allow American firms greater access to the world's largest oil reserves.
Shares in the oil sector were flying on Monday, led by Chevron and ConocoPhillips, as investors scrambled to assess what the capture of Venezuelan President Nicolás Maduro by the U.S. military over the weekend could mean for the industry.
Shares of U.S. oil companies soared in premarket trade on Monday, as investors monitor the fallout from the White House's military operation in Venezuela.