\n<\/p>\n
Shares in US oil companies have jumped at the start of trading, as investors anticipate opportunities in Venezuela following the removal of Nicol\u00e1s Maduro last weekend.<\/strong><\/p>\n Chevron<\/strong>, the American energy giant, is up 4.4% on Wall Street \u2013 reflecting predictions that, as the only major US oil company operating in Venezuela, it is in pole position to profit from the upheaval.<\/p>\n Rivals ExxonMobil<\/strong> (+2%) andConocoPhillips <\/strong>(+4.1%) are also among the top risers in New York, as analysts predict that the US intervention in Venezuela as a positive development for its oil companies.<\/p>\n But while Donald Trump\u2019s administration is determined to access Venezuela\u2019s energy reserves, there are also warnings that billions of dollars must be spent to rebuild its infrastructure, before its heavy oil can be shipped to US refineries.<\/p>\n Morningstar\u2019s<\/strong> director of equity research, Allen Good, explains:<\/strong><\/p>\n \u201cVenezuela has substantial oil reserves, reportedly larger than those of Saudi Arabia, making it appealing to US oil companies. Currently, Chevron is the only major US operator remaining in Venezuela, since Exxon and ConocoPhillips left in 2007 after the government nationalised their assets. Given its significant presence – holding stakes in four key joint ventures and an offshore gas field which may now be fully developed – Chevron is best positioned to benefit from US involvement in Venezuelan crude restoration projects. Although the company paused reporting on production or reserves, current reports suggest that Chevron exports around 150,000 barrels of oil per day under current US licenses.<\/p>\n Exxon and ConocoPhillips have sought billions in remuneration through arbitration since leaving the country but have had little success collecting this. Opening the country could potentially allow for re-entry and collection of awards or restoration of assets.<\/p>\n Although the US interest makes sense initially, following years of neglect and sanctions, Venezuela\u2019s oil industry will require tens of billions in investment to lift production meaningfully. Furthermore, the bulk of its reserves are extra-heavy oil, which is costly and capital-intensive to extract. Oil companies will need to be cautious about deploying capital until there is greater regulatory and contractual certainty. While Chevron may be able to add incremental production in the near term with US approval, meaningful volume increases are likely years away. With this in mind, the possibility of US companies developing Venezuela\u2019s oil reserves remains far from certain.\u201d<\/p>\n Share<\/span><\/span><\/p>\n Key events<\/p>\n <\/span>Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/span><\/p>\n <\/span><\/p>\n The Dow Jones Industrial Average hit a record high today despite signs that America\u2019s manufacturing sector is struggling.<\/strong><\/p>\n US factory output contracted in December for the 10th straight month, according to the ISM Manufacturing PMI which has dropped to 47.9%, the lowest reading of 2025, down from 48.2% in November.<\/p>\n Susan Spence<\/strong>, MBA, chair of the Institute<\/strong> for<\/strong> Supply<\/strong> Management<\/strong> manufacturing business survey committee, says:<\/p>\n In December, U.S. manufacturing activity contracted at a faster rate, with pullbacks in the Production and Inventories indexes leading to the 0.3-percentage point decrease of the Manufacturing PMI.<\/p>\n Those two subindexes increased in November, so their contraction this month continues the short-term \u201cbubble\u201d of improvement indicative in the last several months of PMI\u00ae data \u2014 and a hallmark of recent economic uncertainty in manufacturing.<\/p>\n Share<\/p>\n The rally in Venezuela\u2019s government bonds today means investors who snapped up the distressed debt are already in profit \u2013 but they may expect more!<\/strong><\/p>\n Bloomberg explains:<\/p>\n Defaulted notes issued by Venezuela and its state-run oil company PDVSA jumped early Monday, with sovereign bonds due in 2027 up 7 cents on the dollar \u2014 or 22% \u2014 in the biggest gain since 2023.<\/p>\n That pushed them to 40 cents, double where they were just six months ago but still below what investors see as a potential recovery value if the country moves to restructure its debts.<\/p>\n [Reminder: prices were so low because Venezuela defaulted in 2017, but some hedge funds have been buying this debt, gambling that it could be worth more in a future debt restructuring].<\/p>\n Share<\/p>\n The jump in Chevron\u2019s share price has helped to lift the US stock market to a record high.<\/strong><\/p>\n The Dow<\/strong> Jones<\/strong> industrial<\/strong> average<\/strong> has risen by more than 1% to a new intraday record high in New York trading this morning, hitting 49,001 points for the first time.<\/p>\n Banks are also rallying, with Goldman<\/strong> Sachs<\/strong> up 4.5% and JP<\/strong> Morgan<\/strong> gaining 2.9%.<\/p>\n Share<\/p>\n A more pro-Western Venezuela<\/strong>, following the abduction of Nicol\u00e1s Maduro, could eventually lead to higher oil output and improved energy security.<\/p>\n Janus Henderson<\/strong> analysts explain:<\/p>\n \u201cThe unfortunate impact of the economic and political difficulties Venezuela has faced for the past two decades on top of sanctions means that many developed market companies have completely exited the market. For the few with residual exposure to Venezuela (e.g. Chevron, Repsol, Telef\u00f3nica) a more stable policy backdrop could provide incremental relief.<\/p>\n \u201cIn the near term, Venezuelan bonds may see initial support as markets price in the prospect of policy normalisation (assuming the country avoids chaos \u2013 early indications are that the U.S. may be willing to work pragmatically with the existing Venezuelan authorities after the challenges faced in Iraq and Afghanistan). Oil markets could also react, though not necessarily in the direction one might expect. While geopolitical uncertainty often pushes prices higher, an eventual increase in Venezuelan supply would exert downward price pressure on crude \u2013 once shipping routes stabilize and sanctions pathways become clearer.<\/p>\n \u201cA transition towards a pro-Western government might ease sanctions, enable foreign investment (although this may require a change in attitude among Venezuela\u2019s current regime or a change of regime altogether), and increase output. It is possible that with outside help and favorable political conditions, Venezuela could double production to 2 million barrels\/day within two years and meaningfully more in the longer run. Such an expansion would alter the global oil balance. It is not difficult to see why Venezuela moving under the aegis of the U.S. could improve energy security for the U.S and by extension the West.\u201d<\/p>\n Share<\/p>\n Updated at\u00a010.00 EST<\/p>\n US oil services company Halliburton\u2019s <\/strong>shares have jumped 7%, as Wall Street traders anticipate it will be involved in the development of Venezuela\u2019s oil infrastructure.<\/p>\n Share<\/p>\n The S&P 500 energy sector has hit highest level in over a year, Reuters reports, and is up 2.4% today.<\/p>\n Share<\/p>\n Shares in US oil companies have jumped at the start of trading, as investors anticipate opportunities in Venezuela following the removal of Nicol\u00e1s Maduro last weekend.<\/strong><\/p>\n Chevron<\/strong>, the American energy giant, is up 4.4% on Wall Street \u2013 reflecting predictions that, as the only major US oil company operating in Venezuela, it is in pole position to profit from the upheaval.<\/p>\n Rivals ExxonMobil<\/strong> (+2%) andConocoPhillips <\/strong>(+4.1%) are also among the top risers in New York, as analysts predict that the US intervention in Venezuela as a positive development for its oil companies.<\/p>\n But while Donald Trump\u2019s administration is determined to access Venezuela\u2019s energy reserves, there are also warnings that billions of dollars must be spent to rebuild its infrastructure, before its heavy oil can be shipped to US refineries.<\/p>\n Morningstar\u2019s<\/strong> director of equity research, Allen Good, explains:<\/strong><\/p>\n \u201cVenezuela has substantial oil reserves, reportedly larger than those of Saudi Arabia, making it appealing to US oil companies. Currently, Chevron is the only major US operator remaining in Venezuela, since Exxon and ConocoPhillips left in 2007 after the government nationalised their assets. Given its significant presence – holding stakes in four key joint ventures and an offshore gas field which may now be fully developed – Chevron is best positioned to benefit from US involvement in Venezuelan crude restoration projects. Although the company paused reporting on production or reserves, current reports suggest that Chevron exports around 150,000 barrels of oil per day under current US licenses.<\/p>\n Exxon and ConocoPhillips have sought billions in remuneration through arbitration since leaving the country but have had little success collecting this. Opening the country could potentially allow for re-entry and collection of awards or restoration of assets.<\/p>\n Although the US interest makes sense initially, following years of neglect and sanctions, Venezuela\u2019s oil industry will require tens of billions in investment to lift production meaningfully. Furthermore, the bulk of its reserves are extra-heavy oil, which is costly and capital-intensive to extract. Oil companies will need to be cautious about deploying capital until there is greater regulatory and contractual certainty. While Chevron may be able to add incremental production in the near term with US approval, meaningful volume increases are likely years away. With this in mind, the possibility of US companies developing Venezuela\u2019s oil reserves remains far from certain.\u201d<\/p>\n Share<\/p>\n The copper price has surged to a record high today, helped by worries of supply shortages and tariff fears.<\/strong><\/p>\n In London, the benchmark copper price hit $13,000 a tonne for the first time, up over 4% today.<\/p>\n That follows a strong 2025; copper, which is widely used in industry including for renewable energy projects and data centres, surged by 42% last year.<\/p>\n Today\u2019s rally comes after a strike began at the Mantoverde mine in Chile last Friday, and as investors worry that Donald Trump might impose tariffs in copper this year. Those tariff worries have encouraged traders to ship copper to the US now.<\/p>\n Share<\/p>\n Elsewhere in the energy sector, US natural gas futures have dropped by as much as 6% today.<\/strong><\/p>\n That should help push down US inflationary pressures. But rather than being a reaction to events in Venezuela, Bloomberg attribute it to forecasts for warmer temperatures next week, which is likely to reduce demand for the fuel.<\/p>\n Share<\/p>\n Markets are prioritizing geopolitics and energy implications following the U.S. actions in Venezuela, reports Bob Savage, head of markets macro strategy at BNY.<\/strong><\/p>\n This rethinking of risks is helping gold and silver, which are both still up today, Savage adds, saying:<\/p>\n The link between Venezuela and changes in the country and Iranian protests will matter today, with the focus on government actions. Denmark\u2019s push to stop U.S. threats to take over Greenland are another case in point.<\/p>\n The U.K. and France bombed ISIS sites in Syria following the U.S. actions in December, highlighting the unified response to any resurgence from the group in the region and beyond.<\/p>\n BNY also shared this chart, showing how most of Venezuela\u2019s oil exports in 2023 went to China:<\/p>\n <\/span>Venezuela\u2019s crude oil exports by country, 2023<\/strong><\/span> Photograph: BNYShare<\/p>\n The Swiss government has frozen any assets held in Switzerland by Nicolas Maduro and people close to the Venezuelan president.<\/strong><\/p>\n The order is to ensure that potentially illegally acquired assets cannot be transferred out of Switzerland, the government said in a statement reported by Bloomberg.<\/p>\n The freeze comes into force with immediate effect and will remain valid for four years, until further notice.<\/p>\n Share<\/p>\n The oil price has shaken off its earlier losses.<\/strong><\/p>\n Brent crude is now up 0.5% at $61 a barrel, as investors recognise that it would take years, and a lot of money, to meaningfully increase Venezuela\u2019s oil exports.<\/p>\n Joshua Mahony<\/strong>, chief market analyst at Scope<\/strong> Markets<\/strong>, explains:<\/p>\n Notably, we have seen oil prices rise despite the prospect of a sharp rise in Venezuelan output as US companies invest and expand operations in a country that boasts the highest oil reserves in the world. However, the reality is that we could see a sharp decline in Venezuelan output over the near-term, with Trump effectively shutting down the shadow fleet trade routes that have seen oil flow to the likes of China over recent years.<\/p>\n While Trump claims to run the country, it will likely take time to even organise the oil industry to start exporting into US refineries, while the potential to ramp up output will invariably take years given the crumbling infrastructure and lack of investment under Maduro.<\/p>\n Share<\/p>\n Investors can be forgiven for wondering whether the US move on Venezuela increases the risk of geopolitical instability around Taiwan, says Chris Beauchamp<\/strong>, Chief Market Analyst at IG<\/strong>.<\/p>\n Beauchamp <\/strong>adds:<\/p>\n \u201cOf potentially greater relevance is whether Washington continues to press its claims over Greenland, and how this may further strain cohesion within the Western alliance.\u201d<\/p>\n Share<\/p>\n The euro has weakened against the US dollar today, as traders have watched Europe\u2019s leaders struggle to response to the capture of Nicol\u00e1s Maduro.<\/strong><\/p>\n The single currency has dropped by more than a third of a cent against the US dollar, to $1.1681, and is also down 0.35% against the pound.<\/p>\n Kit<\/strong> Juckes<\/strong>, chief FX strategist at Societe Generale, <\/strong>says there is a clear risk that the euro experiences a significant correction, adding:<\/p>\n The sense that three of the big global powers are flexing geopolitical muscles while Europe prevaricates, is hard to avoid and our belief that EUR\/USD can make it to 1.20 before turning lower, is going to be tested.<\/p>\n Share<\/p>\n Heightened geopolitical risks have pushed up defence stocks across Europe today.<\/strong><\/p>\n German arms manufacturer Rheinmettal<\/strong>\u2019s shares have jumped by 7.3%, as have RENK<\/strong> Group<\/strong>, which makes propulsion and drivetrain technology for military vehicles.<\/p>\n Thales<\/strong>, which makes defense systems, are up 4.3%, while aerospace firm Leonardo<\/strong> are 6% higher.<\/p>\n In London, BAE<\/strong> Systems<\/strong> remain one of the top risers, up 4.5%.<\/p>\n As well as the Venezuela invasion, investors are also digesting Donald Trump\u2019s enthusiasm for acquiring Greenland.<\/p>\n Yesterday, the US president told The Atlantic magazine: \u201cWe do need Greenland, absolutely. We need it for defence.\u201d<\/p>\n Greenland\u2019s prime minister Jens-Frederik<\/strong> Nielsen<\/strong> has hit back, saying on Facebook last night:<\/p>\n \u201cThreats, pressure, and talk of annexation have no place between friends.<\/p>\n Enough is enough. (…) No more fantasies about annexation.\u201d<\/p>\n Share<\/p>\n The initial reaction to the US military action in Venezuela across equity, fixed income and commodity markets is likely to be small, predicts Stephen Dover, <\/strong>head of Franklin Templeton Institute.<\/strong><\/p>\n But, it will also reinforce the need for some countries to boost spending on national security, and could eventually lead to significant supplies of oil from Venezuela.<\/p>\n Here are some initial implications, Dover adds:<\/p>\n US intervention is not unprecedented.<\/strong> The US has a long history of intervening in the Western Hemisphere. The US first formally declared its \u2018hegemonic interests\u2019 in the region via the Monroe Doctrine of 1823. It would therefore be incorrect, in our view, to consider the recent action as a fundamental change in US foreign policy, or to suggest that similar steps might be contemplated in the Middle East or elsewhere.<\/p>\n<\/li>\n Defense investment becomes more important.<\/strong> The Trump Administration has reinforced the perception that the US is willing to act unilaterally and to use force. Other countries, with territorial interests elsewhere, could be emboldened by the US use of power. This action will also likely add to the uncertainty of the dollar\u2019s role as the \u201csafe heaven\u201d while raising further questions about deterioration of international institutional pillars. The US military\u2019s recent action is therefore likely to reinforce the trend, well underway, for various countries worldwide to invest more in their national security. That has been one of our key investment themes since the Russian invasion of Ukraine.<\/p>\n<\/li>\n Limited short-term oil supply impact.<\/strong> Given the uncertainties about how Venezuela will be governed and given the checkered US history of \u2018regime change\u2019 in petro-countries (e.g., Iraq or Libya), oil markets are unlikely to anticipate a rapid increase in crude oil supply from Venezuela. Venezuela has the world\u2019s largest reserves of crude oil (over 300 billion barrels), but the poor state of its ageing oil extraction and transportation infrastructure, coupled with the low quality of its \u2018heavy\u2019 crude, suggest that even the arrival of political stability will not quickly increase its crude oil output or exports (presently around 1 million barrels per day or roughly 1% of world output). Another factor to keep in mind is that most of Venezuela\u2019s oil is exported to China.<\/p>\n<\/li>\n Potential long-term oil market impact stronger.<\/strong> Longer-term stability in Venezuela, coupled with a potential peace deal in Ukraine, could release more than 5 million barrels per day of oil onto global crude markets by the end of this decade. If so, that would amount to about 5% or more of global crude output, enough to keep oil prices depressed for longer, which would be a clear positive for global growth and a restraint on inflation.<\/p>\n<\/li>\n<\/ul>\n Share<\/p>\n Updated at\u00a005.46 EST<\/p>\n Meanwhile in the UK, consumer borrowing rose by the most in two years in November, a sign that people put the cost of Christmas on their credit cards.<\/strong><\/p>\n Bank of England data shows that net borrowing of consumer credit by individuals increased to \u00a32.1bn in November, up from \u00a31.7bn in October.<\/p>\n The BoE also reports that the annual growth rate for all consumer credit rose to 8.1% in November, from 7.5% in the previous month, adding:<\/p>\n That included a 12.1% increase in credit card borrowing, with other forms of consumer credit increasing by 6.3%.<\/p>\n Karim Haji, <\/strong>global and UK head of financial services at KPMG, <\/strong> says the data shows that consumers are being squeezed:<\/p>\n \u201cThe uptick in consumer borrowing will catch few by surprise as many households rely more heavily on credit to manage the elevated costs of Christmas.<\/p>\n <\/em>\u201cThe clear theme as we enter 2026 is one of fragility, [with] continued economic uncertainty and cautious consumer spending. The regulator is putting a heavy emphasis on supporting customers. Lenders need to be very clear in their approach to customer focused rules like Consumer Duty, Fair Value and Targeted Support.\u201d<\/p>\n Share<\/p>\n US energy company shares are set to rally when Wall Street opens later today.<\/strong><\/p>\n Chevron, <\/strong>which is seen as well-placed to invest in Venezuela\u2019s oil industry, has jumped by 7% in pre-market trading. It is already operating in the country under a special licence provided by the Trump administration.<\/p>\n Exxon Mobil <\/strong>are up 3.2% in pre-market trading, while Halliburton<\/strong> \u2013 who provide products and services to the oil and gas sector \u2013 have jumped 9%.<\/p>\n Share<\/p>\n Venezuela\u2019s government bonds have leapt in value this morning (as JP Morgan predicted earlier), as investors bet on a debt restructuring following the capture of president Maduro.<\/strong><\/p>\n As explained at 8.04am, Venezuela\u2019s debt trades far below its face value after the country defaulted in 2017, but has been rising in recent weeks as some traders have anticipated regime change in Caracas.<\/p>\n Deutsche Borse data shows that a Venezuelan government bond that matures in 2027 has jumped in price, from 31.5p on the dollar to over 40p on the dollar.<\/p>\n A second bond which should have been repaid in 2022 has risen too, from 31.5p to 34p.<\/p>\n These gains mean bond vultures who swooped on Venezuela\u2019s debt last month will already be sitting in profits, as the markets anticipate that Maduro\u2019s removal could lead to a restructuring of Venezuela\u2019s government debt.<\/p>\n Reuters reports that bonds issued by the country\u2019s government and state oil company, Petroleos<\/strong> de<\/strong> Venezuela<\/strong> (PDVSA<\/strong>), jumped as much as 8 cents on the dollar, or around 20%, in early European trading, with analysts predicting further gains to come.<\/p>\n Share<\/p>\n Updated at\u00a004.26 EST<\/p>\n","protected":false},"excerpt":{"rendered":" US oil company shares jump on Venezuela developments Shares in US oil companies have jumped at the start of trading, as investors anticipate opportunities in Venezuela following the removal of Nicol\u00e1s Maduro last weekend. Chevron, the American energy giant, is up 4.4% on Wall Street \u2013 reflecting predictions that, as the only major US oil<\/p>\n","protected":false},"author":1,"featured_media":40370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[15493,303,2071,19943,949,132,10799,268,7696,1099,13140,1854,2228,5483],"class_list":{"0":"post-40369","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-bonds","9":"tag-business","10":"tag-company","11":"tag-dow","12":"tag-high","13":"tag-live","14":"tag-maduro","15":"tag-oil","16":"tag-rally","17":"tag-record","18":"tag-seized","19":"tag-sending","20":"tag-shares","21":"tag-venezuelan"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/40369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40369"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/40369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/40370"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Venezuela’s bond rally hands windfall to hedge funds<\/h2>\n
Dow hits intraday record high<\/h2>\n
US oil company shares jump on Venezuela developments<\/h2>\n
European defence stocks have jumped today<\/h2>\n
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US energy company stocks jump in pre-market trading<\/h2>\n
Venezuela’s bonds surge as investors bet on debt restructuring<\/h2>\n