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4 Energy Stocks To Watch Amid the Venezuelan Crisis— And It's Not Just Chevron And Exxon

Benzinga · 5d ago

Investment expert Kiana Danial has identified four energy stocks as potential beneficiaries of the ongoing Venezuelan crisis.

Rebuilding Venezuela’s Oil Industry Will Take Years

Danial, the CEO of Invest Diva, through a thread of posts on X on Monday, emphasized that the restoration of Venezuela’s oil industry would not be an overnight process but would require years of contracts, infrastructure, and services

She highlighted that Schlumberger (NYSE:SLB) is a key player in the potential reconstruction of Venezuela’s oil industry. She also noted that Baker Hughes (NYSE:BKR) has a significant stake in energy infrastructure and the LNG sector, making it a long-term geopolitical hedge.

Additionally, Danial pointed out that Marathon Petroleum (NYSE:MPC) is a U.S. refiner that is well-positioned to handle heavy crude, a key factor considering Venezuela’s heavy crude production. Phillips 66 (NYSE:PSX), with its refining and logistics exposure, is also one of Danial’s key stock picks.

See Also: Mark Cuban Asks If You’d Support Universal Healthcare If It Only Cost $10 A Year — And Every Doctor Got Paid Twice As Much As They Do Now

Venezuela Shock Lifts Oil Stocks

The Venezuelan crisis escalated when the U.S. military captured President Nicolás Maduro, leading to a surge in oil stocks, including Chevron (NYSE:CVX), as investors anticipated a potential revival of Venezuela’s oil industry.

This sudden shift in the Venezuelan oil market has also sparked a divide among major oil companies. Analysts suggest that companies like Chevron, with strong operational leverage, could outpace others like Exxon Mobil (NYSE:XOM), whose upside is more skewed toward legal recovery, according to JPMorgan’s Arun Jayaram.

Over the past week, Chevron and Exxon stocks have gained 8.52% and 4.20%, respectively.

Renowned investor Michael Burry has also weighed in on the Venezuelan oil crisis, predicting a potential rebound in Venezuelan crude and highlighting a strategic play to revitalize Venezuela’s petroleum sector through companies like Valero Energy (NYSE:VLO).

Price Action: Over the past year, Phillips 66 and Schlumberger surged 21.54% and 13%, respectively, as per data from Benzinga Pro. For the same period, Baker Hughes and Marathon Petroleum stocks climbed 14.57% and 24.49%, respectively.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.