Following Nicolás Maduro’s victory in the Venezuelan presidential election amidst stiff opposition challenges contesting the results, the public is now keen to know the oil stocks he supports, especially given the challenges faced by the country’s oil sector.
Maduro’s administration has overseen an economic downturn, a significant exodus of Venezuela’s populace, and strained diplomatic ties. This has led the re-elected president to pledge reducing Venezuela’s reliance on oil revenue from the United States and the European Union.
In the midst of the recent political turmoil in this South American country, there are two specific oil stocks that Maduro backs.
#1 BP (BP)
One such stock is BP (NYSE: BP), the British energy giant that recently secured a 20-year license to exploit the Venezuelan section of a natural gas field extending into the Caribbean Sea, a move Maduro hailed as a “significant step forward.”
At present, the multinational oil company’s shares are priced at $35.05, indicating a 0.54% dip for the day, a 0.11% slide for the week, a 3.76% fall in the past month, and a 1.18% decrease since the start of the year.
#2 Repsol (REP)
On the other hand, Maduro favors another stock, Repsol (BME: REP), a Spanish multinational in energy and petrochemicals, presently engaged in three partnerships with the state-owned Petroleos de Venezuela SA to alleviate Venezuela’s chronic gasoline shortages.
Repsol is among the major oil firms granted more operational autonomy in their local ventures. The stock is currently valued at €13.10 (~$14.17), with a 0.58% rise in the last 24 hours, a 1.39% decline in the past week, a 12.06% drop for the month, and a 3.39% decrease in the year.
In essence, these oil stocks have Nicolás Maduro’s backing due to their potential impact on Venezuela’s economy. However, amid the ongoing political tensions, their values are depreciating, presenting a possible opportunity for a bargain. Nonetheless, conducting thorough research before investing is indispensable.
Image Source: StringerAL / Shutterstock