Chevron Gets US Nod to Maintain Oil Assets in Venezuela: Retail’s Split

Chevron (CVX) stock was in the spotlight after reports said that President Donald Trump’s administration would allow the oil producer to conduct minimal maintenance of its essential assets in Venezuela.

Bloomberg News reported late last week that the Treasury Department will grant the waiver authorizing Chevron to carry out only critical upkeep and safety-related functions. An earlier waiver was set to expire on Tuesday.

Trump first revoked the license in February after saying that Venezuela had not met the electoral conditions for the permit, and accused President Nicholas Maduro’s administration of not doing enough to accept migrants.

The report said the new waiver would be similar to those granted to Chevron and a few other companies, which allowed them to maintain their assets but prohibited fresh investments or crude exports.

While Trump has been vocal against Maduro’s regime, there has been a growing voice among his aides who believe that the oil license could be used to persuade Venezuela to accept more migrants. Some aides of the President also believe that Chinese or Russian companies could rush to fill the void left by Chevron.

Last week, Trump’s special envoy, Ric Grenell, had secured the release of a U.S. Air Force veteran from Venezuelan custody and suggested that the license could be extended for 60 days.

However, Secretary of State Marco Rubio, known for a more hawkish stance on the South American country, said the license would expire on the scheduled date.

Retail sentiment on Stocktwits was in the ‘neutral’ (47/100) territory, while retail chatter was ‘low.'

Chevron is also locked in an arbitration fight with larger peer Exxon over Hess Corp’s Guyana assets.

Chevron stock has fallen 6.1% year to date (YTD).

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