Oil and defense stocks gain after President Trump says the US plans to “run” Venezuela after Saturday’s military operation
Oil and defense stocks rose in premarket trading Monday as markets reacted to the US military’s Saturday operation in Venezuela, which resulted in the capture of President Nicolás Maduro.
The rally in energy shares followed weekend statements from President Trump, who said the US will temporarily “run” Venezuela throughout the transition and that US oil companies are prepared to “spend billions of dollars” rebuilding the country’s oil infrastructure. Indeed, Venezuela’s oil sector has been crippled by years of underinvestment, US sanctions, and mismanagement, despite the country holding the world’s largest proven oil reserves — estimated at ~19% of global reserves or 303 billion barrels as of 2024, according to OPEC’s annual statistical bulletin.
Those seen as potential beneficiaries — and among the key movers as of Monday morning — include major names such as Chevron, the only US oil producer still operating in Venezuela, as well as Exxon and ConocoPhillips. Oil field service firms like Halliburton and Schlumberger are also up more than 4.5%, as investors wager their services could potentially be central to repairing the country’s production facilities. Refineries like Valero, Phillips 66, and Marathon Petroleum gained as well, as their US Gulf Coast facilities are designed to process heavy, high-sulfur Venezuelan crude.
The jump in oil equities comes despite little change in crude prices — in fact, both Brent and US West Texas Intermediate are down about 0.4% this morning, as global supply remains ample relative to demand, and OPEC+ said yesterday it would keep its current production policy unchanged.
Retail traders are also looking for ways to profit from any oil-related volatility, with commodity tickers the top three most discussed on Reddit’s r/WallStreetBets forum, per data from SwaggyStocks.
Global defense stocks are trading higher as well as investors price in heightened geopolitical risk, with Lockheed Martin and German manufacturer Rheinmetall AG both up nearly 3%, while defense contractors also jumped across Japan and South Korea. Palantir, which has a number of US defense contracts and recently announced a $448 million deal with the US Navy, is also making gains, up more than 4% as of 6:25 a.m. ET.
International reaction has poured in, the most notable of which came from China — the top destination for Venezuela’s crude oil exports, per CNBC — with officials in Beijing calling on the US to release Maduro and his wife “at once.”
Delcy Rodríguez is set to be sworn in as Venezuela’s new leader this morning.
The jump in oil equities comes despite little change in crude prices — in fact, both Brent and US West Texas Intermediate are down about 0.4% this morning, as global supply remains ample relative to demand, and OPEC+ said yesterday it would keep its current production policy unchanged.
Retail traders are also looking for ways to profit from any oil-related volatility, with commodity tickers the top three most discussed on Reddit’s r/WallStreetBets forum, per data from SwaggyStocks.
Global defense stocks are trading higher as well as investors price in heightened geopolitical risk, with Lockheed Martin and German manufacturer Rheinmetall AG both up nearly 3%, while defense contractors also jumped across Japan and South Korea. Palantir, which has a number of US defense contracts and recently announced a $448 million deal with the US Navy, is also making gains, up more than 4% as of 6:25 a.m. ET.
International reaction has poured in, the most notable of which came from China — the top destination for Venezuela’s crude oil exports, per CNBC — with officials in Beijing calling on the US to release Maduro and his wife “at once.”
Delcy Rodríguez is set to be sworn in as Venezuela’s new leader this morning.
