Today, interest in Venezuelan oil stocks is soaring as investors look for ways to trade the headline news. Recent reports suggest that the U.S. is seeking to add to its Venezuelan oil imports to top up refineries as the country looks beyond Russian oil. While Russian oil imports account for a small percentage of the overall imports the U.S. receives, there will be a shortfall for refineries if this supply cannot be replaced. Accordingly, in the face of already high inflation, President Joe Biden and his administration are seeking out options to source the supply and try to keep domestic gasoline prices low.
That has meant reaching out to Venezuela. Reports say that Washington has sent a delegation to Caracas, approximately three years after the U.S. broke off diplomatic relations with the country. The hope is that Nicolás Maduro — a president the U.S. doesn’t currently recognize as the legitimate leader of the country — will reverse course and divert oil exports to the United States.
Perhaps this is a long shot. There’s no indication thus far that this delegation will be successful. However, for now, interest among Venezuelan oil stocks is soaring.
So, let’s dive into what investors are watching in this part of the oil market today.
How to Play Venezuelan Oil Stocks Right Now
Notably, Venezuela is one of a few countries that has had a nationalized oil sector for decades. In fact, it continues to produce its oil domestically via Petróleos de Venezuela, a state-owned company.
That said, there are a few U.S. stocks that do have joint ventures in Venezuela. Among the companies interesting investors right now is Chevron (NYSE:CVX). That’s because Chevron has a significant investment in the oil-producing nation.
Various reports have signaled that Chevron could be one of the key beneficiaries from this change in policy. Accordingly, CVX stock is on the move higher on an otherwise choppy day for the overall market.
Certain catalysts are difficult to play. The Venezuelan news may be one such catalyst. Still, investors appear to be turning their attention to Chevron today — and rightly so.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.