The energy sector has been one of the most cautious areas of the stock market recently, as President Trump started to roll out more trade tariffs in this and other sectors that are dependent on the price of oil and its swings. The most recent hit has come to Venezuela, where the penalty comes through a 25% tariff for all countries and companies that deal with Venezuelan oil. While that may seem bearish overall, it actually creates a massive opportunity.
This opportunity can only be taken by those who know what they are looking for, and this is where Venezuelan oil makes a difference. Compared to West Texas Intermediate (WTI) oil, which is mostly used for gasoline due to its light and sweet nature, the heavy and sour oil coming out of Venezuela makes it suitable for other types of products, such as diesel. Bottlenecks forming in this heavy oil could spike margins and earnings for the companies that deal in this space.
