Why Are XOM, CVX, GEV Stocks Rising Overnight?

• As per the report, a majority of the deals suggest completion of a six-month migration of oil contracts to an amended hydrocarbon law that will provide more flexibility to foreign firms to expand and operate oilfields, ​export the barrels, and cash sale proceeds.
• Reuters also added that one of the sources mentioned that Chevron's agreements with Venezuela are expected to be "of significant size." 
• The report comes shortly after U.S. President Donald Trump announced that his administration has signed a new agreement with Venezuela, one of the "BIGGEST OIL DEAL IN HISTORY,” earlier this week. 

Shares of oil companies Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), and GE Vernova Inc. (GEV) climbed higher in the overnight session late Monday after reports suggested the companies are on track to sign final agreements in Venezuela. 

According to a Reuters report citing five sources familiar with the matter, the three American companies, along with India's ONGC, Italy's Eni, and Colombia's GeoPark, are close to signing energy deals in the country after months of negotiations.

The report comes shortly after U.S. President Donald Trump announced that his administration has signed a new agreement with Venezuela, one of the "BIGGEST OIL DEAL IN HISTORY,” earlier this week. 

Reuters said executives from the companies did not comment. 

Deal Contours

As per the report, a majority of the deals suggest completion of a six-month migration of oil contracts to an amended hydrocarbon law that will provide more flexibility to foreign firms to expand and operate oilfields, ​export the barrels and cash sale proceeds. The deals also outline terms for new energy and electricity projects.

The companies’ list is yet to be finalized as negotiations are ongoing, as per the report. Reuters also added that one of the sources mentioned that Chevron's agreements with Venezuela are expected to be "of significant size." 

Chevron is seeking to add an Orinoco Belt block to expand its PDVSA joint venture, while also pursuing a Monagas North area that could provide key diluents for its extra-heavy oil production, as per the report. 

The agreements are likely to be finalized as early as this week, and ​are separate from the large Caracas-Washington pact ​announced last week for the ⁠U.S. to lock in a stake in 17 oilfields with about 64 billion barrels of proved reserves, the report added. 

Trump Confirms Potential Deal 

Meanwhile, Trump reportedly said at a press event in ​the Oval Office on Monday that Exxon, Chevron other large American oil companies will be entering Venezuela, adding that “everybody's bidding," for the U.S. to take out "millions and millions of barrels of oil" that is already being shipped to refineries in Texas and Louisiana, among ​other locations.

"We're making a fortune, and they're making a fortune. They're ​starting to make real money," Trump added. 

Over the weekend, Venezuelan interim President Delcy Rodriguez, who took over the reins of the country after U.S. special forces captured former President Nicolás Maduro earlier this year, confirmed the U.S.-Venezuela oil deal, adding that the energy agreement will remain in effect for 25 years, with an initial goal of increasing crude production to more than 1.5 million barrels per day (bpd). She stressed that the 1.5 million-bpd target applies specifically to the U.S.-Venezuela bilateral agreement.

XOM, CVX, GEV: What’s Retail Saying?

On Stocktwits, retail sentiment around XOM stock was ‘neutral’ at the time of writing, while it was ‘bullish’ for CVX stock. 

Sentiment around GEV stock improved from ‘bullish’ to ‘extremely bullish’ over 24 hours. 

Message volumes around the companies also grew by triple-digit percentages, as per platform data. 

One bullish user said, “$XOM ... just heard Trump say regarding Venezuela deal that "We have Exxon coming in, we have Chevron coming" and the oil will be refined in US. Long & Strong.”

Another user said, “$GEV If the S&P and Nasdaq remain bullish for tomorrow then we are going to rip higher.”

XOM stock is up more than 31% this year, while CVX and GEV stocks have risen more than 32% each in the same time. 

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