Trump statement increased US oil companies' stocks
On Monday, the stock prices of major US oil companies rose. This was reported by Zamin.uz.
This was due to a statement by former US President Donald Trump about the possibility of gaining access to Venezuela's oil reserves, Reuters reports. Trump emphasized that if the Venezuelan leader is captured, the US could establish control over the oil facilities in that country.
He also mentioned that American companies could invest there, restore infrastructure, and later earn profits. It is known that Venezuela is one of the countries with the largest oil reserves in the world.
However, in recent years, due to mismanagement, lack of investments, and international sanctions, the volume of oil production in the country has significantly decreased. During premarket trading, shares of Chevron, the only major US company operating in Venezuela, rose by 7 percent.
Additionally, securities of companies such as Phillips 66, Marathon Petroleum, Valero Energy, and PBF Energy also increased by 5-16 percent. At the same time, overall oil prices in the international market remained almost unchanged.
This is due to the fact that supply remains high in the global market. The issue of oil deliveries from Venezuela remains uncertain.
Because Venezuelan oil contains a high amount of sulfur, it is considered a suitable raw material for producing diesel and other heavy products. Especially, US refineries around the Gulf of Mexico are adapted to process such raw materials.
According to Reuters, if political and economic changes occur in Venezuela, Chevron could benefit first. US oil refineries would gain access to heavy oil from nearby sources.
