Shares in US oil giants Chevron and Exxon surged in pre-market trading while oil prices slipped as investors sought to balance the differing short- and long-term implications of Venezuelan President Nicolás Maduro’s arrest.
Venezuela controls the world’s biggest known oil reserves, but its production in recent years has been relatively small — its 800,000 barrels per day are barely 5% of US output — and political upheaval could disrupt that further. But prospects are strong for firms such as Chevron, the only major US oil company present in Venezuela.
And the potential for a huge additional tranche of crude to hit an oversupplied market could weigh on already-low oil prices: ING warned of “downside risks” to its 2027 price forecast.
