told the Financial Times<\/a> that his Amos Global Energy Management fund had identified Venezuelan assets and was preparing to make an investment. \u201cWe have been anticipating this breakthrough for a while and our $2bn private placement memorandum is ready to go with several investment targets identified,\u201d he said.<\/p>\nKathleen Brooks, the research director at XTB, said a fall in oil prices could be \u201cshort-lived\u201d as investors assessed how long it would take for extra Venezuelan oil to affect the global market. She said: \u201cThe type of investments needed include upgrading old and decaying infrastructure, drilling new oil wells and building more refineries to process Venezuela\u2019s heavy crude oil.<\/p>\n
\u201cOptimising resource-rich Venezuela to generate the income needed to turn the country around could take until 2030 and beyond.\u201d<\/p>\n
Brooks noted that the country pumped nearly 3.5m barrels a day at its 1998 peak, far exceeding the 1m a day now.<\/p>\nThe El Palito refinery above Puerto Cabello. Reviving Venezuela\u2019s oil production would be \u2018a very long-term project\u2019, said the former BP cheif executive John Browne. <\/span> Photograph: Matias Delacroix\/AP<\/figcaption><\/figure>\nJohn Browne, a former chief executive of BP, told BBC Radio 4\u2019s Today programme it would take a \u201ctremendous amount of skill, investment and time\u201d to revive Venezuela\u2019s oil production. \u201cIt is a very long-term project,\u201d he said. \u201cIt might get a quick pickup of a little production, but equally it might go backwards while people are reorganising.\u201d<\/p>\n
The political disruption has also prompted a rally in the Venezuelan bond market. Its debt, which has traded well below its face value since the country defaulted in 2017, has been rising in recent weeks as some traders anticipated a regime change.<\/p>\nA Venezuelan government bond that matures in 2027 has jumped in price from 31.5p on the dollar to more than 40p on the dollar, according to data from Deutsche B\u00f6rse. A second bond that should have been repaid in 2022 has risen from 31.5p to 34p.<\/p>\n
China\u2019s top financial regulator, the National Financial Regulatory Administration, has asked its policy banks and other big lenders to report their exposure to Venezuela, according to Bloomberg, as the Chinese banking sector prepares for potential shocks.<\/p>\n
Despite the geopolitical upheaval over the weekend, the Opec+ oil group did not signal a shift in strategy at a scheduled update on Sunday. The group, which includes Russia, Saudi Arabia and the United Arab Emirates, agreed to maintain their pause on production increases until at least April.<\/p>\n
The price of gold rose by 2% to $4,430.27 an ounce on Monday. The metal is considered a traditional safe haven asset, and typically rises during periods of uncertainty. Silver also rose by as much as 3.9% to $75.42 an ounce. Both metals hit record high prices last year, driven by global economic and political uncertainty, as well as expectations around interest rate cuts and large purchases of bullion by central banks.<\/p>\n
The price of bitcoin has also been rising on geopolitical uncertainty, increasing by 1.7% to $93,085 on Monday.<\/p>\n
Asian markets were buoyant, posting their strongest start to a year since 2012. The South Korean Kospi index hit a fresh record high, rising by 3%. In London, the FTSE 100 opened back above 10,000 \u2013 after breaking the mark for the first time last week<\/a> \u2013 before easing to trade up 0.2%.<\/p>\n<\/div>\n#energy #stocks #rise #Trump #vows #unlock #Venezuela #oil #Oil<\/p>\n","protected":false},"excerpt":{"rendered":"
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