After Venezuela Operation, US Oil Stocks Jump

Oil investors wasted no time placing bets after a stunning weekend move by Washington reshaped the outlook for Venezuela's vast crude reserves. Shares of major US oil companies jumped in early trading Monday, with Chevron up about 8%, Exxon Mobil rising more than 4%, ConocoPhillips gaining around 7.5%, and oilfield services firm SLB climbing close to 10%, per CNBC. This comes after the US military operation in Venezuela and President Trump's pledge that the US will "run" the country while US oil companies "go in" and fix the country's oil infrastructure.

Venezuela, a founding member of OPEC, holds the world's largest proven crude reserves—about 303 billion barrels, or roughly 17% of the global total, according to US estimates. Traders are considering both "the overall global instability created by the Trump administration's intervention" and the possibility that Venezuela will sell more of its oil reserves in the future, driving down prices, reports NBC News. However, reviving Venezuela's oil infrastructure is likely to take years and $8 billion of direct investment, according to state-controlled oil company PDVSA. Crude prices edged slightly lower Monday with plentiful supply, Reuters reports, noting "analysts said any further disruption to Venezuela's exports would have little immediate impact on prices."