On Monday, shares of major US oil companies rose. The move followed President Donald Trump’s remarks about potential access to Venezuela’s oil reserves, Reuters reported. This was reported by kursiv.uz. reports .
Trump said that if Venezuela’s president is detained, the United States could take control of the country’s oil facilities. He noted that American companies could invest, rebuild infrastructure, and later begin earning profits.
Although Venezuela holds the world’s largest oil reserves, output has fallen sharply in recent years due to mismanagement, lack of investment, and sanctions.
In premarket trading, shares of Chevron—the only major US company operating in Venezuela—rose 7%. Phillips 66, Marathon Petroleum, Valero Energy, and PBF Energy also gained between 5% and 16%.
Overall, oil prices were little changed. It was noted that ample global supply is weighing on the market, while the outlook for shipments from Venezuela remains uncertain.
Venezuelan crude is a heavy grade with high sulfur content. This makes it suitable for producing diesel and other heavy products. US Gulf Coast refineries designed to process such crude can take it in easily.
According to Reuters, if conditions change, Chevron could be among the first companies to benefit. US refiners may also gain an opportunity to increase volumes of heavy crude from a “closer-to-home” source.
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