Chevron Stock: Trump Revokes Venezuela License

The stock of US oil giant Chevron has come under pressure after President Donald Trump unexpectedly withdrew the company's license for operations in Venezuela. Trump cited insufficient progress on electoral reforms and migrant repatriations as justification for the decision, which triggered immediate reactions in global oil markets. U.S. Secretary of State Marco Rubio announced plans to provide foreign policy guidelines to terminate all oil and gas licenses for companies operating in Venezuela that have "shamefully financed the illegitimate Maduro regime." The move could potentially affect other energy corporations with US-approved access to Venezuelan oil. Oil prices recovered noticeably on Thursday after previously trading at their lowest levels since December 10, though Brent and WTI still record losses of approximately 4.5 percent for the current month.

Market Impact and Trading Implications

Chevron's Venezuelan joint ventures produced about a quarter of the South American country's total oil production last year, making Venezuela the fourth-largest crude oil supplier to the United States. The license revocation could lead to negotiations between the US producer and state-owned PDVSA to export crude oil to regions other than the USA. Spot prices for an important medium-grade crude oil rose on the US Gulf Coast as refineries began searching for alternatives such as Colombian, Ecuadorian, and Guyanese grades. From a technical perspective, Chevron's stock is currently testing the 20-day EMA at $154.84 as immediate short-term support, with the 50-day line at $151.04 representing the next crucial threshold. After a strong recovery since the beginning of the year, the stock's momentum has noticeably cooled.

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Source StockWorld