US energy companies and several hedge funds were handsomely rewarded when markets opened on Monday after news of the US attack on Venezuela and abduction of President Nicolas Maduro over the weekend.
The MSCI US Energy index, which tracks a basket of American stocks with exposure to the energy industry, was trading up 2.8 percent on Monday, widely outperforming gains in the broader S&P 500 and other global energy stocks.
The rally was an early reflection of investors' bets that US multinationals and investors stand to reap outsized gains from President Donald Trump’s vow to “run” Venezuela, a South American country home to 17 percent of global crude reserves that has been under devastating US sanctions.
Chevron, the only US energy company operating in Venezuela under a special licence provided by the Trump administration, led the gains among oil producers with its share price trading up about six percent. ConocoPhillips was trading up 3.3 percent, and Exxon Mobil was up 2.4 percent.
Meanwhile, Halliburton, a US company that services oil fields, soared 10 percent.
