Venezuelan Oil Stock News: Why Chevron (CVX) Stock Fans Should Be Watching
Today, interest in Venezuelan oil stocks is skyrocketing as investors look for ways to trade the headlines. Recent reports suggest that the United States is looking to increase its imports of Venezuelan oil to supplement refineries as the country looks beyond Russian oil. While Russian oil imports represent a small percentage of the total imports the United States receives, there will be a shortfall for refineries if this supply cannot be replaced. As a result, in the face of already high inflation, President Joe Biden and his administration are looking for options to stock up and try to keep domestic gasoline prices low.
It has meant reaching out to Venezuela. Reports say Washington sent a delegation to Caracas, some three years after the United States severed diplomatic ties with the country. The hope is that Nicolás Maduro – a President of the United States does not currently recognize as the rightful leader of the country – will reverse course and divert oil exports to the United States.
Maybe that’s a long shot. There is no indication so far that this delegation will be successful. However, for now, interest among Venezuelan oil stocks is skyrocketing.
So, let’s dive into what investors are looking at today in this part of the oil market.
How to Play Venezuelan Oil Stocks Right Now
Notably, Venezuela is one of the few countries to have had a nationalized oil sector for decades. In fact, it continues to produce its oil on the domestic market via Petroleos de Venezuelaa public company.
That said, there are a few US stocks that have joint ventures in Venezuela. Among the companies of interest to investors at the moment is Chevron (NYSE:CLC). This is because Chevron has a significant investment in the oil-producing nation.
Various reports reported that Chevron could be a major beneficiary of this policy change. As a result, CVX stock is up on an otherwise choppy day for the broader market.
Some catalysts are difficult to play. The Venezuelan news could be one of those catalysts. Still, investors seem to be turning their attention to Chevron today – and rightly so.
As of the date of publication, Chris MacDonald did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.