Chevron Corporation (CVX), the sole Western supermajor permitted to pump Venezuelan oil, swung sharply in the markets this week. On Tuesday, Jan. 6, the stock dropped nearly 4.5%, its worst slide since April, just one day after a 5.1% surge tied to the unexpected U.S. capture of Venezuelan President Nicolás Maduro.
Chevron currently accounts for roughly 20% of Venezuela’s crude oil production, giving it the clearest strategic position to benefit from any rebuilding of the country’s long-dormant oil industry. Yet analysts increasingly caution that converting political momentum into sustained production growth may take far longer than markets anticipate.
