US Oil Stocks Surge Following Maduro Ouster

US oil companies saw a boost on Wall Street early Monday, following the United States’ removal of Venezuela’s leader, as the market reopened after the holiday season and geared up for important employment figures.

During initial trading, both Chevron and ConocoPhillips rose by more than 4 per cent, while ExxonMobil rose by 2.1 per cent. These increases contributed to a rise in major indices, with the Dow Jones Industrial Average climbing 1.1 per cent to 48,903.76.

The S&P 500, a broader index, gained 0.6 per cent to 6,895.94, and the tech-heavy Nasdaq Composite Index also advanced 0.6 per cent to 23,381.70.

US Oil Stocks Surge Following Maduro’s Ouster. AFP

The surge in US oil stocks contrasted with relatively stable crude prices. Experts suggest that increased oil supplies from Venezuela, expected due to US investments promised by President Donald Trump, will likely take years to manifest in the market.

Following the military action in Venezuela and the arrest of its president, Nicolas Maduro, Trump said that US firms would “enter the country, invest billions, and repair the severely damaged infrastructure.”

The weekend’s events had little impact on the financial markets, where traders are focused on economic indicators and Federal Reserve policy announcements.

In addition to this week’s employment figures for December, the markets are anticipating the upcoming fourth-quarter earnings season.

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