US Energy Shares Surge as Trump Targets Venezuelan Oil Revitalization

US energy shares rise sharply as President Trump announces plans to revitalize Venezuela's oil industry. Despite an initial dip in production expected, firms anticipate a recovery and possible growth with investment. Analysts warn political risks and low prices may delay infrastructure improvements.

The energy sector witnessed a significant upswing Monday as President Donald Trump unveiled plans to assume control of Venezuela's oil industry, promising American companies would rejuvenate its operations following the ousting of President Nicolas Maduro.

Although the action might not immediately influence global crude prices amid the current oversupply, it has the potential to disrupt the energy markets over time. Venezuela, suffering from years of mismanagement and sanctions, could potentially boost its output to historic levels, albeit with varying timelines according to experts.

Analysts remain cautious, citing potential political hurdles and current low oil prices as deterrents to rapid investment. However, share prices of companies with refinery operations, such as Valero and Marathon Petroleum, and oilfield service companies, including Halliburton, saw significant gains with optimism surrounding the potential in the Venezuelan market.

(With inputs from agencies.)