Shares of energy companies climbed as the industry shifts its gaze toward Caracas. JPMorgan’s head of commodities strategy, Natasha Kaneva, noted that the ongoing war in Iran has made it nearly impossible to forecast a stable endgame for global oil prices, prompting a scramble for alternative production corridors.
In section Market Quotes
ExxonMobil Eyes Return to Venezuela Amid Middle East Oil Volatility
Nearly two decades after its exit, ExxonMobil is closing in on a preliminary deal to resume oil field investments in Venezuela. The move arrives as energy markets struggle to price in the escalating conflict in Iran, with major investors seeking stability in South American reserves to hedge against geopolitical uncertainty.
While the specific terms of the ExxonMobil negotiations remain fluid, a return to Venezuelan fields marks a significant strategic pivot. The company’s reentry would signal a broader trend among oil majors attempting to diversify supply chains away from the increasingly volatile Middle Eastern theater.
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