After Nicolás Maduro won the presidential elections in Venezuela with strong challenges coming from the opposition, which believes the real results are different, the public has become more interested in which oil stocks he endorses, particularly considering the country’s struggling oil industry.
Indeed, Maduro’s government has presided over an economic crash, a massive migration of Venezuela’s population, as well as weakening diplomatic relations, leading the returning president to vow to make Venezuela less dependent on oil income from the United States and the European Union.
Amid the recent political tension in the South American nation, there are two oil stocks in particular that Maduro endorses.
Picks for you
#1 BP (BP)
Specifically, the first is BP (NYSE: BP), the British energy producer that has recently received a 20-year license to develop the Venezuelan side of a natural gas field that extends into the waters of the Caribbean Sea, in what Maduro referred to as a “monumental step in the right direction.”
For the moment, the multinational oil and gas company’s stocks are trading at the price of $35.05, suggesting a decrease of 0.54% on the day, a decline of 0.11% across the week, and a 3.76 drop in the last month, while also losing 1.18% since the year’s turn.
#2 Repsol (REP)
Meanwhile, the other stock that Maduro favors, as it helps ease years of gasoline shortages in his country, belongs to Repsol (BME: REP), a Spanish multinational energy and petrochemical company, which currently has three joint ventures with state-owned Petroleos de Venezuela SA.
As it happens, Repsol is one of the oil majors that has received more operational control in their local joint ventures, and its stock price currently stands at €13.10 (~$14.17), up 0.58% gain in the last 24 hours, down 1.39% in the previous seven days, losing 12.06% on its monthly chart and declining 3.39% in 2024.
Conclusion
Ultimately, the above oil stocks are in President Nicolás Maduro’s favor, particularly as they help Venezuela’s economy. However, considering the current political tensions, these stocks are recording declines, which could also mean a good opportunity to buy them cheaply. Still, doing one’s own research is critical.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
