Chevron, Exxon shares in focus after US intervention in Venezuela

Shares of U.S. oil companies soared in premarket trade on Monday, as investors scrutinize the fallout from the Trump administration’s surprise military operation in Venezuela.

Chevron shares rose 8.4% at 10:00 a.m. London time (5:00 a.m. ET), with Exxon Mobil up 4.1% and oilfield services giant SLB climbing 9%.

The moves come after the U.S. conducted a major military operation in Venezuela over the weekend, capturing Venezuelan President Nicolas Maduro and his wife, Cilia Flores, in an audacious intervention that has sent shockwaves across the globe.

U.S. President Donald Trump has since said the White House will “run” the South American country until such a time that “a safe, proper and judicious transition” can take place.

Venezuela is a founding member of OPEC, an influential energy alliance, and sits on the largest proven crude oil reserves in the world at 303 billion barrels, according to the U.S. Energy Information Administration. That represents roughly 17% of global oil reserves.

Trump has said U.S. investment in Venezuela’s energy sector is now a core objective for his administration.

“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, the oil infrastructure,” Trump said in a press conference from his Mar-a-Lago residence in Palm Beach, Florida.

“Let’s start making money for the country,” Trump said on Saturday.

Oil prices were last seen slightly lower on Monday morning.

International benchmark Brent crude oil futures with March delivery traded down 0.6% at $60.40 per barrel, while U.S. West Texas Intermediate futures with February delivery stood 0.4% lower at $57.11.

— CNBC’s Spencer Kimball contributed to this report.