Wall Street witnessed a significant rally in oil stocks on Monday, driven by intense speculation that US energy companies stand to gain from President Donald Trump's recent announcement regarding Venezuela's vast crude oil reserves. The buying frenzy was most pronounced in shares of Chevron Corporation, which surged more than 5%.
Chevron's Unique Advantage in Venezuela Crisis
The sharp rise in Chevron's stock price is directly linked to its exclusive position in the South American nation. Amid the escalating US-Venezuela conflict, market experts highlighted that Chevron is the sole US oil company currently engaged in exploration and production within Venezuela. The company reportedly accounts for roughly 25% of Venezuela's net oil exploration business.
Sandeep Pandey, Co-founder of Basav Capital, explained the dynamic. "The US actions in Venezuela would benefit Chevron Corporation the most," he stated. "The market is expected to bring early benefits to this company, whereas other firms will need to secure projects and start operations, a process that will take a much longer time."
Technical Breakout and Price Targets
The trading session on Monday saw Chevron's shares open with a strong gap-up at $165.75 on the NYSE, climbing from a previous close of $155.90. Analysts are now watching a critical technical level.
Anshul Jain, Head of Research at Lakshmishree, provided a detailed outlook. "Chevron stock is on the verge of resolving a massive 46-month consolidation," he said. Jain noted that the price is pressing against the upper band of the $165 to $168 range. "A clean breakout and sustained hold above $168 would mark a long-term trend shift, opening a powerful momentum leg toward the $285 to $300 zone," he added, pointing to converging and supportive moving averages across daily, weekly, and monthly charts.
Geopolitical Trigger: US Military Action
The catalyst for the market movement was a large-scale US military strike against Venezuela on Saturday. President Trump announced the operation on his Truth Social platform, confirming that Venezuelan leader Nicolas Maduro had been captured. Subsequently, Trump revealed plans for the US to tap Venezuela's significant oil reserves for sale to other nations.
This announcement immediately sparked speculation about which American oil majors would gain access to these resources. Given its established footprint, Chevron emerged as the immediate and clear frontrunner in the eyes of investors, leading to the substantial 5% gain in its share price while other oil stocks finished 2-3% higher.
Disclaimer: This story is for educational purposes only. The views and recommendations are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
