Exxon Mobil (XOM) Stock Jumps Premarket Following Trump Venezuela Announcement

TLDR

• Exxon Mobil stock jumped 3.2% to $126.55 in premarket trading on Monday following Venezuela-related headlines
• U.S. officials told oil executives they must invest capital to revive Venezuela’s oil sector to receive compensation for assets seized two decades ago
• Exxon has pursued $1.65 billion in arbitration claims related to Venezuela nationalizations, while ConocoPhillips seeks about $12 billion
• President Trump announced plans to send large American oil companies to Venezuela to rebuild energy infrastructure after the capture of President Nicolas Maduro
• The premarket rally occurred despite crude prices falling, with Brent down 0.8% to $60.26 and WTI sliding 0.9% to $56.79

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Exxon Mobil shares climbed sharply in premarket trading Monday, rising 3.2% to $126.55. The jump came as investors processed breaking news about Venezuela and potential opportunities for U.S. oil companies.

Exxon Mobil Corporation, XOM

The stock traded between $126.26 and $127.38 in early extended hours. Chevron and ConocoPhillips also posted strong gains during the same period.

Venezuela holds the world’s largest proven crude reserves. Any change in access or U.S. policy can quickly shift expectations for supply and potential cash recoveries for companies locked in disputes with Caracas.

For Exxon, the Venezuela situation extends beyond oil barrels. A Reuters report revealed U.S. officials told oil executives they need to return and invest capital to revive Venezuela’s damaged oil sector if they want compensation for expropriated assets.

Those claims date back two decades to when the Venezuelan government seized company assets. The disputes have gone through arbitration, a process that resolves cases outside traditional courts.

ConocoPhillips has sought roughly $12 billion linked to Venezuela nationalizations. Exxon has pursued $1.65 billion through the same process.

Venezuela Capture Triggers Trump Response

On Saturday, U.S. forces captured Venezuelan President Nicolas Maduro in a military operation. President Trump held a press conference at his Mar-a-Lago estate following the event.

Trump stated he would send large American oil companies to Venezuela to start rebuilding. The companies would be reimbursed for their efforts, he said.

Venezuela currently accounts for less than 1% of global oil supplies. This is despite the country sitting on some of the world’s largest reserves.

Francisco Monaldi commented on the situation. He said Exxon, ConocoPhillips and Chevron would not be concerned about investing in heavy oil, the type produced in Venezuela’s Orinoco Belt.

Stock Movement Against Oil Price Backdrop

The premarket strength came even as crude prices declined. Brent crude fell about 0.8% to $60.26 per barrel.

U.S. West Texas Intermediate slid roughly 0.9% to $56.79. Ample global supplies offset any risk premium from Venezuela turmoil.

Exxon closed Friday’s regular session at $122.65. The stock touched an intraday high of $122.68 during that session.

Monday’s premarket move pushed the stock well above that prior peak. The 52-week range for Exxon sits at $97.80 to $122.68.

Traders are watching whether Exxon can hold above the prior 52-week high near $122.68. That level can act as resistance when first breached.

Washington has said the embargo on Venezuelan crude remains in place. Any production recovery would take years and require heavy investment.

Bloomberg News reported Chevron currently produces about 20% of Venezuela’s oil. Exxon and ConocoPhillips previously quit production after former President Hugo Chavez nationalized their assets.

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