Shares of U.S. oil companies are up as much as 10% on Jan. 5 after the U.S. attacked Venezuela and captured the country’s president Nicolás Maduro.
Shares of U.S. oil major Chevron (CVX) are up 8% in premarket trading, while the stock of
ConocoPhillips (COP) is up 7.5% and oilfield services giant SLB (SLB) has gained 10%.
The big moves higher come after the U.S. military struck Venezuela and captured Maduro on charges of drug trafficking and other crimes.
U.S. President Donald Trump has since said that the White House will “run” the South American country after the military strike.
Venezuela is a founding member of the OPEC cartel and sits on the largest crude oil reserves in the world at 303 billion barrels, according to the U.S. Energy Information Administration (EIA).
In all, Venezuela holds 17% of the world’s crude oil reserves. Trump said following the strike that U.S. investment in Venezuela’s energy sector is now a core objective of his administration.
However, while the stocks of U.S. oil companies are rising, crude prices are lower after the U.S. military action in Venezuela.
Brent crude oil, the international standard, is down 0.60% at $60.10 U.S. per barrel, while West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is down 0.40% at $57.11 U.S.
Some energy analysts say that the lack of political stability in Venezuela could make reviving the country’s oil industry difficult.
Analysts also say that U.S. oil companies might be reluctant to get involved in Venezuela’s oil industry given the political turmoil and the fact that crude prices are low right now.
