US Oil Stocks Rally In Pre-Market Trade After Capture Of Venezuela's Maduro, Chevron Jumps More Than 10%
Shares of Chevron are gaining as much as 11% in pre-market trade, mirroring gains of both Valero and ConocoPhillips.
The United States' capture of Venezuela's Nicolas Maduro may have significant ramifications for the global oil markets, with the South American nation holding the largest oil reserves in the world.
While all eyes will be on the US market opening on Monday, big oil stocks in the US have already started reacting in pre-market trade, with the likes of Chevron, Valero and ConocoPhillips leading gains.
Shares of Chevron are gaining as much as 11% in pre-market trade, mirroring gains of both Valero and ConocoPhillips.
US oil companies are expected to be big beneficiaries after the US army captured Venezuela's Nicolas Maduro, gaining indirect control of the South American nation's political power.
US President Donald Trump confirmed that the US now controls much of Venezuela's 303 billion barrels, higher than Saudi Arabia's.
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Since much of the reserves come in the form of heavy crude, US oil companies could play a critical role in refining the crude, with their superior technology and infrastructure.
Keeping that in mind, all US oil companies are rallying in pre-market trade.
While gains are led by Chevron, Valero and ConocoPhillips, shares of Exxon is also up as much as 6%, the same as Phillips 66.
Some of the other gainers in the pre-market trade include Occidental Petroleum (4%), EOG Resources (4%), Devon Energy (4%) and Kinder Morgan (3%).
These stocks have now added over $100 billion in market capitalisation on news of Maduro being captured by the US, reports The Kobeissi Letter.
As the day progresses, it will be interesting to see how these US oil companies perform in pre-market trade and whether or not the momentum will continue until market open.
