On Monday, shares of major U.S. oil companies rose. This came after President Donald Trump said there could be an opportunity to gain access to Venezuela’s oil reserves, Reuters reported. This was reported by kursiv.uz. reports .
According to Trump, after Venezuela’s leader is detained, the United States may be able to take control of the country’s oil facilities. He emphasized that U.S. companies could invest money, rebuild infrastructure, and later profit from it.
Venezuela holds the world’s largest oil reserves. However, in recent years production has fallen sharply due to mismanagement, a lack of investment, and sanctions.
In premarket trading, shares of Chevron—the only major U.S. company operating in Venezuela—rose 7%. Shares of Phillips 66, Marathon Petroleum, Valero Energy, and PBF Energy gained between 5% and 16%.
At the same time, overall oil prices were little changed, held back by ample global supply. Uncertainty over shipments from Venezuela remains.
Venezuelan crude is heavy and high in sulfur, making it suitable for producing diesel and other heavy products. Such crude is relatively easy to process at U.S. Gulf Coast refineries designed to handle this type of oil.
Reuters notes that if political and economic changes occur, Chevron could be the first to benefit. U.S. refiners would be able to secure more heavy crude from a closer source.
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