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Stock futures and oil prices rose slightly late Sunday as investors began to digest the implications of the U.S. military raid on Venezuela that captured Nicolas Maduro.
Although the country has the world’s largest proven oil reserves, production has been declining for years due to U.S. sanctions, Maduro regime mismanagement and underinvestment.
President Donald Trump said Saturday that Maduro’s departure would trigger a wave of investment in Venezuela’s oil industry and revive production, although analysts say that could take years.
Meanwhile, Venezuela’s waning influence in the global oil landscape is leading Wall Street to downplay the short-term effects of U.S. intervention in that country.
“The physical situation in the global oil market remains the same. Oil prices have declined due to an oversupplied global oil market,” Rob Hummel, senior portfolio manager at Tortoise Capital Management, said in a note. “Current events in Venezuela do not change this dynamic.”
U.S. oil futures rose 0.19% to $57.43 a barrel and Brent crude climbed 0.28% to $60.92 a barrel, with both benchmarks reversing earlier losses.
OPEC+ also supported plans to maintain stable production during the first quarter and to suspend any further increases, as oil markets still face oversupply.
Futures contracts tied to the Dow Jones industrial average were essentially flat, down 5 points. S&P 500 futures rose 0.10% and Nasdaq futures rose 0.32%.
The 10-year Treasury yield was unchanged at 4.191%. The US dollar rose 0.14% against the euro and 0.22% against the yen.
Gold rose 1.7% to $4,403.70 an ounce and silver jumped 5.4% to $74.86. Bitcoin edged up 2.3% to $92,265.
After the successful raid in Venezuela, Trump said he’s still eyeing Greenland and warned that Cuba was “very similar” to the Maduro regime.
But the economic calendar could lead him back to focusing on the U.S. economy rather than other overseas adventures. The next set of numbers is also highly anticipated because it will be largely free of distortions related to the government shutdown.
On Monday, the Institute for Supply Management will release its manufacturing activity index. On Wednesday, the ADP publishes its report on private sector payrolls and the Ministry of Labor publishes a report on job openings and turnover.
And on Friday, the Labor Department will release its monthly jobs report, with Wall Street expecting a gain of just 54,000 and another increase in the unemployment rate to 4.7%.
