Shares of major US energy companies climbed on Monday as investors reacted to Washington’s intervention in Venezuela, betting that political changes could eventually open access to the country’s vast oil reserves.
Chevron shares rose more than 4% at market open after a sharp gain in pre-market trading, while other energy firms including Exxon and ConocoPhillips also advanced. Chevron is currently the only US company operating in Venezuela, alongside a small number of Western firms such as Spain’s Repsol, whose shares also posted gains.
Investors Move Toward Energy and Safe-Haven Assets
The developments in Venezuela also pushed investors toward assets traditionally seen as safer during periods of geopolitical uncertainty. Gold prices rose nearly 2% to around $4,412 an ounce, while silver gained more than 3%. Precious metals often benefit from global tensions as investors seek to reduce risk exposure.
Gold recorded its strongest annual performance since 1979 last year, rising more than 60% amid expectations of interest rate cuts, heavy central bank purchases and ongoing global economic uncertainty.
Oil prices were more volatile. Brent crude edged up by more than 1% to near $61.50 a barrel, although analysts said global supply levels remain sufficient to offset potential disruptions linked to Venezuela.
Oil Infrastructure Limits Short-Term Impact
Despite the market reaction, energy experts caution that Venezuela’s oil sector faces significant challenges. The country’s production has declined for years and currently accounts for roughly 1% of global oil output. Analysts say restoring output would require billions of dollars in investment and substantial time.
Former BP chief executive Lord Browne said that while some production could recover quickly, overall output might initially fall as the industry undergoes restructuring. Strategists also noted that the intervention is unlikely to have an immediate impact on fuel prices for consumers or businesses.
Defense and Mining Stocks Also Gain
Defense stocks across Europe rose sharply as investors assessed the broader geopolitical implications. In the UK, shares of BAE Systems climbed around 5%, while Germany’s Rheinmetall surged more than 8%. Market analysts said defense companies often benefit during periods of heightened international tension due to expectations of increased government spending.
Mining stocks followed the rise in precious metals, with companies such as Endeavour Mining and Fresnillo posting gains of more than 4%.
Global Markets Remain Steady
Asian stock markets also advanced, with Japan’s Nikkei 225 rising about 3% on the first trading day of the year. Markets in South Korea and China recorded gains as investors focused on regional economic data rather than developments in Venezuela.
Analysts said the broader market response suggests investors expect the fallout from events in Venezuela to remain limited in the near term.
