Chevron Stock Dips Slightly After Rubio Says US Won’t Extend Venezuela License: Retail Sits On The Fence

Chevron (CVX) stock slightly declined Thursday after the U.S. Secretary of State, Marco Rubio, said the company’s license to operate in Venezuela would expire on May 27, as scheduled.

Rubio's announcement on X late Wednesday was a complete reversal from U.S. special envoy Richard Grenell, who said the license would be extended for 60 days after Venezuela agreed to release a U.S. Air Force veteran from detention.

“The pro-Maduro Biden oil license in Venezuela will expire as scheduled next Tuesday, May 27th,” Rubio said without mentioning anything about talks. Chevron produces roughly 20% of Venezuela’s oil.

Trump 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.

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.

Right-wing activist Laura Loomer, seen as close to Trump, had earlier said that the license revocation could hurt U.S. energy interests and help Chinese and Russian companies.

This contradicts Rubio and another faction of the Republican party, whose electorate dislikes the socialist regimes of Latin America, such as Cuba and Venezuela.

“The recent zig-zags in Venezuela policy have left investors, and frankly everyone else, with their heads spinning,” Geoff Ramsey, a senior fellow at the Atlantic Council in Washington, said, according to a Bloomberg report.

Despite having the largest oil reserves in the world, Venezuela’s economy has been crippled by Western sanctions which has led thousands to flee the country.

Retail sentiment on Stocktwits was in the ‘neutral’ (52/100) territory, while retail chatter was ‘low.’

Chevron stock has fallen 7% year to date (YTD).

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