Several American oil companies are starting Monday with solid gains on the stock market. This comes after the United States carried out a major operation over the weekend, took President Nicolas Maduro prisoner and announced plans to invest in the oil industry in the South American country.
Chevron, which is the only major American oil company in Venezuela, was up almost five percent after just over an hour of trading.
Meanwhile, there is also solid progress at the companies Exxon and ConocoPhillips, which are up just under two percent and almost three percent, respectively.
Venezuela's oil reserves are the world's largest, and the country holds approximately one-fifth of the world's total reserves. But the state has failed to exploit oil's economic potential.
Venezuela thus only accounts for 0.8 percent of global oil production. US President Donald Trump would like to change this with American help.
- We will let our very large American oil companies - the largest in the world - go in and spend billions of dollars to repair the severely dilapidated infrastructure, the oil infrastructure, Trump said at a press conference on Saturday.
Analysts have pointed out that it will require investments worth many billions of dollars to get production in Venezuela up to full speed. According to CNN's information, the upgrades could cost an estimated 58 billion dollars - or 370 billion kroner.
Chevron operates under a special license in Venezuela, as the US has sanctioned Venezuela. Exxon and ConocoPhillips left the country in 2007, when they refused to agree to then-President Hugo Chavez's conditions in connection with a comprehensive nationalization of the industry.
If you look more broadly at the Dow Jones and Nasdaq indices, they start Monday with increases. The dramatic events over the weekend in Venezuela do not seem to have a major impact on US stocks, writes the AFP news agency, which has spoken to Sam Stovall from the analysis company CFRA Research.
- Normally, Wall Street does not react much to military confrontations, especially on such a small scale that it does not really affect the global economy, he says.
- People are creeping back towards stocks and waiting to see what happens to the central bank and corporate profits.
/ritzau/
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