Energy-related stocks advanced on Monday as investors reacted to expectations that the United States could eventually play a role in reopening Venezuela’s vast oil resources following political upheaval in the country. Market enthusiasm, however, was tempered by widespread acknowledgment that restoring Venezuela’s oil sector would be a slow and complex process.
Shares of Chevron posted notable gains, rising sharply in early trading before closing the session solidly higher. The company remains the only U.S.-based oil producer with active operations and export permissions in Venezuela, positioning it as a potential beneficiary of any shift in U.S. policy toward the country.
Crude oil prices fluctuated overnight before moving higher by the end of the trading day. Both U.S. benchmark West Texas Intermediate and global Brent crude posted gains of more than a dollar per barrel, reflecting cautious optimism rather than supply-driven urgency.
Despite the geopolitical developments, U.S. equity markets showed little sign of stress. The S&P 500 and the Nasdaq Composite ended the day higher, while the Dow Jones Industrial Average outperformed, driven largely by strength in energy shares. Chevron emerged as the top gainer within the Dow.
Energy led all sectors, though financial and consumer discretionary stocks also recorded solid advances. Overseas markets followed suit, with major indexes across Europe and Asia posting gains as investors appeared reassured that tensions had not escalated further. This marked the first significant trading session following the holiday period.
Optimism around the possibility of renewed access to Venezuelan oil fields also lifted shares of Exxon Mobil and ConocoPhillips. Oilfield service providers joined the rally, as companies such as Baker Hughes, SLB, and Halliburton posted strong gains on expectations of future infrastructure work.
Venezuela holds the largest proven oil reserves globally, exceeding those of countries such as Saudi Arabia and Russia. Speaking over the weekend, Donald Trump said U.S. oil companies could invest heavily to repair the nation’s deteriorated production facilities and restore output.
Industry analysts, however, cautioned that such ambitions face significant obstacles. Years of underinvestment, sanctions, and equipment decay have sharply reduced Venezuela’s production capacity. Analysts note that even with foreign capital and technical expertise, rebuilding the sector to meaningful levels would likely take many years.
Sanctions imposed by the United States have played a central role in the industry’s decline, and it remains uncertain whether any revival plan would include easing those restrictions or lifting limitations on oil exports.
Meanwhile, uncertainty surrounding global politics pushed investors toward traditional safe-haven assets. Gold prices climbed, and silver recorded even stronger gains, reflecting a cautious undertone beneath the broader market rally.
