The indices on Wall Street are likely to start the first full trading week of the year with slightly positive signs. The future on the S&P 500 rose by 0.2 percent. However, developments in Venezuela at the weekend are likely to cause restraint, it is said. After the military strikes against Venezuela and the capture of ruler Nicolas Maduro, the USA wants to install a transitional government in the country. This is intended to repair the ailing oil industry and stabilize the country.
The clearest impact of the Venezuela developments was seen on oil prices, which initially fell more sharply but have largely made up for these losses. The prices for Brent and WTI are currently falling by 0.1 percent each. According to Deutsche Bank economists, the prospect of a long-term recovery in oil supply as a result of expected higher production in Venezuela is likely to depress oil prices. “Trump himself said over the weekend that US oil companies would ‘go in, spend billions of dollars, repair the damaged infrastructure, the oil infrastructure, and start making money for the country,'” they explain. In fact, these expectations would have depressed oil prices somewhat on Monday morning.
The fall of the Maduro regime could give the US some power over China, says market strategist Kathleen Brooks of XTB. Given the country’s significant oil reserves, the move could secure U.S. supplies for years to come. It could also help the U.S. exert some influence over China, which buys more oil from Venezuela than anyone else, Brooks said.
The shares of Chevron (+7.7%), Exxon (+4.1%) and Conocophilips (+7.1%) are rising sharply before the market. The fall of Maduro has created the conditions for US oil companies to be able to expand their activities in the oil-rich South American republic again. Chevron is the only major U.S. oil company currently present in the country. An easing of restrictions on Chevron’s operations under a new government could boost production of Venezuelan oil, JP Morgan said. Conocophillips and Exxon left Venezuela in 2007 after then-President Hugo Chavez nationalized their assets.
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(END) Dow Jones Newswires
January 05, 2026 05:48 ET (10:48 GMT)
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