At a Glance
- WTI and Brent climbed 0.3% and 0.2% respectively early Monday after a volatile Sunday swing.
- Trump pledged to spend billions of dollars to rebuild Venezuela’s oil infrastructure, sparking a surge in U.S. energy-sector shares.
- Gold and silver rose 2.1% and 4% as investors sought safe-haven assets.
- Why it matters: The market is weighing the potential supply shock against the promise of a long-term investment in one of the world’s largest oil basins.
Oil prices swung sharply overnight on Sunday as traders reacted to President Trump’s remarks following the U.S. forces’ capture of Venezuelan leader Nicolás Maduro. WTI opened lower at 6 p.m. ET, then rose 0.3% by 6:30 a.m. ET Monday. Brent followed a similar pattern, gaining 0.2%.
Trump’s Venezuela Investment Plan
President Trump said:
> “We’re going to have our very large United States oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure and start making money for the country.”
His comment sparked a rally in energy stocks. Chevron shares surged 10% in pre-market trading, while Exxon Mobil and ConocoPhillips rose about 4%. Refiners Valero and Phillips 66 climbed 7%, and suppliers SLB, Baker Hughes and Halliburton gained between 7% and 9%.
Safe-Haven Assets and Market Sentiment
Gold leapt $90 (over 2.1%) and silver rose nearly 4% as investors sought protection amid geopolitical uncertainty. Futures markets also reflected optimism: S&P 500 futures were up 0.3% and Nasdaq 100 futures jumped 0.8%.
| Metric | Change |
|---|---|
| WTI (USD) | +0.3% |
| Brent (USD) | +0.2% |
| Gold (USD) | +$90 |
| Silver (USD) | +4% |
| S&P 500 Futures | +0.3% |
| Nasdaq 100 Futures | +0.8% |
Supply Outlook and OPEC Stance
Venezuela, home to the world’s largest oil reserves, currently exports little crude due to decades of underinvestment. The state-controlled PDVSA estimates that restoring infrastructure to 1990s levels would require $8 billion. Trafigura’s chief economist Saad Rahim warned:
> “The oil market faces a super glut of supply, which would likely drive prices even lower.”
Separately, OPEC, of which Venezuela is a founding member, decided to keep its collective output steady and did not comment on the Venezuelan developments.
Key Takeaways
- WTI and Brent edged up early Monday after a volatile Sunday swing.
- Trump’s pledge to invest billions in Venezuela’s oil sector spurred a rally in energy stocks.
- Safe-haven assets rose sharply, reflecting heightened geopolitical risk.
The day’s movements underscore the delicate balance between potential supply disruptions and the promise of long-term investment in Venezuela’s vast but neglected oil assets.
