Energy stocks rise as markets react to U.S. action in Venezuela

Oil stocks surged on Monday as investors weighed the potential consequences of the Trump administration’s military intervention in Venezuela, lifting the energy sector of the S&P 500 by 3 percent and helping the broader index gain 0.7 percent. Oil service companies such as Halliburton and SLB Limited rose more than 10 percent, while Chevron climbed 5.5 percent.

ConocoPhillips and Exxon Mobil also gained. Brent crude, the international benchmark, rose 1.7 percent to $58.32 a barrel. Analysts noted that these firms could benefit from a reopening of Venezuelan oil markets and the possible return of U.S. companies after Venezuela nationalized foreign oil assets in the early 2000s.

Venezuela currently produces about one million barrels a day, roughly 1 percent of global output, but holds the world’s largest proven oil reserves. Some investors had feared the intervention might encourage military action elsewhere, such as against Taiwan, and destabilize markets, but those concerns did not show up in trading on Monday.

Key Topics

Business, Oil Stocks, Venezuela, Halliburton, Slb Limited, Chevron