Oil stocks led Monday’s market rally as investors assessed the potential reopening of Venezuelan oil markets.
The S&P 500’s energy sector climbed 2.7 percent, helping the broader index gain 0.6 percent, with refiners and oil service companies seeing the largest jumps.
Valero Energy Corporation surged 9.2 percent, poised to benefit from heavier Venezuelan crude, while SLB Limited, the oil services giant, rose 9 percent on expectations for renewed extraction and infrastructure projects. Chevron, which has maintained operations in Venezuela, added 5.1 percent, and ConocoPhillips and Exxon Mobil, still owed funds from the nationalization of foreign assets, also posted gains.
The rally follows recent geopolitical moves in Venezuela that have prompted speculation about U.S. oil companies returning to one of the world’s largest proven oil reserves. Analysts note that while Venezuela produces only about 1 percent of global oil, unlocking its reserves could provide long-term production upside for American firms.
Investors initially worried that aggressive actions in Venezuela might destabilize global markets or encourage military conflicts elsewhere, such as in Asia.
“I think the market has concluded that the geopolitical consequences won’t be as significant or as stunning as the action has been,” noted president of Yardeni Research, Edward Yardeni.
Oil prices also responded to the developments, with Brent crude rising 1.7 percent to $58.32 per barrel. While increased Venezuelan production could ultimately exert downward pressure on oil prices in an already well-supplied market, some investors see short-term opportunities in refiners and service providers.
As we noted in December 2025, energy appears to be gradually returning to core diversified portfolios, supported by improving earnings and strategic geopolitical positioning.
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