After securing victory in the Venezuelan presidential election despite facing stiff opposition challenges disputing the results, there is now a growing interest in the oil shares endorsed by Nicolás Maduro. This is particularly significant given the obstacles confronting the country’s oil industry.
Under Maduro’s leadership, Venezuela has experienced an economic downturn, a notable outflow of its population, and strained diplomatic relations. Consequently, the re-elected president has committed to decreasing Venezuela’s dependence on oil revenue from the United States and the European Union.
Amidst the recent political instability in this South American nation, two specific oil shares have garnered Maduro’s support.
#1 BP (BP)
One such share is BP (NYSE: BP), the British energy behemoth that recently obtained a 20-year permit to exploit the Venezuelan portion of a natural gas field extending into the Caribbean Sea, a move Maduro praised as a “significant leap forward.”
Currently, the multinational oil corporation’s stocks are trading at $35.05, reflecting a 0.54% decline for the day, a 0.11% decrease for the week, a 3.76% slump in the last month, and a 1.18% drop since the beginning of the year.
#2 Repsol (REP)
On the flip side, Maduro favors another share, Repsol (BME: REP), a Spanish multinational operating in energy and petrochemicals, currently involved in three collaborations with the state-owned Petroleos de Venezuela SA to mitigate Venezuela’s persistent gasoline shortages.
Repsol is among the major oil corporations granted increased operational autonomy in their local projects. The share is presently valued at €13.10 (~$14.17), with a 0.58% uptick in the last 24 hours, a 1.39% decline in the previous week, a 12.06% decrease in the past month, and a 3.39% drop for the year.
Fundamentally, these oil shares carry Nicolás Maduro’s endorsement due to their potential influence on Venezuela’s economy. Nevertheless, amidst the ongoing political tensions, their valuations are dwindling, offering a potential bargain. However, it remains crucial to conduct thorough research before making any investment decisions.
Image Source: StringerAL / Shutterstock
