Here are five things you need to know this morning
Rodriguez calls for U.S. cooperation: Venezuela’s acting president Delcy Rodríguez is calling on the United States to cooperate with her government following the capture of Nicolás Maduro. In a statement, Rodríguez invited Washington to work together on a development agenda within international law. U.S. President Donald Trump says Venezuela will need to rebuild and warned Rodríguez of consequences if she fails to cooperate. Maduro is scheduled to appear in a New York court later today.
Oil steady after U.S. action in Venezuela: We’re watching the price of oil, as the market reacts to the U.S. action in Venezuela. West Texas Intermediate crude was trading slightly higher early in today’s session. Venezuela accounts for a small fraction of global supply and the market are already grappling with a swelling glut. While the U.S. says it plans to increase production in Venezuela, experts say any meaningful change would take years to take effect.
U.S. oil stocks jump: U.S. oil stocks traded higher in the premarket in reaction to the news in Venezuela. Chevron, Exxon Mobil and ConocoPhillips all surged on expectations of expanded access to Venezuela’s vast oil reserves. Trump says U.S. companies will invest billions to rebuild the country’s crumbling infrastructure.
Impact on Canadian energy sector: Meanwhile there is speculation about the potential impact of the situation in Venezuela on Canada’s energy sector. Analysts at Bloomberg Intelligence say Canadian Natural Resources, Suncor and other oil sands producers face no immediate threat from the ouster of Venezuelan President Nicolas Maduro, yet over time, the Latin American nation’s 303 billion barrels of reserves could reemerge as a competing source of heavy crude. That would rival Canada’s roughly 5 million barrels a day of output and potentially end its near monopoly on such exports to the U.S.
New Freeland appointment: Former federal minister Chrystia Freeland has been appointed as an economic adviser by Ukrainian president Volodymyr Zelenskyy. Freeland, who has Ukrainian heritage, was named by Prime Minister Mark Carney last year as Canada’s special representative for the reconstruction of Ukraine. Her appointment comes as Carney travels to Paris to meet with other allies of Ukraine in a bid to end Russia’s nearly four-year war on the country.
