A very, very interesting week - as we have two huge events that could greatly affect the markets in the United States
One is a geopolitical event, which we have already discussed, the massive operation by the United States military in Venezuela
The operation, hailed as a tremendous success and one of the most amazing operations in military history, is changing the global balance of power, with Venezuela becoming - de facto - an American asset
What does this actually mean?
That as of yesterday, the United States has become the owner of enormous quantities of oil, iron ore, gold, and more.
The attention?
Here it gets very interesting
The implications for oil
Although the United States is set to increase oil production in Venezuela, in the short term Trump may use it as leverage against China.
It is important to note that until yesterday, Venezuela was China's main oil supplier - Venezuela owes tens of billions to China, which it pays with discounted oil.
Now,
With Trump taking the reins, we may see China needing oil from other sources - for which it will be willing to pay more?
Meanwhile -
Chevron $CVX - the only American company currently operating in Venezuela
Oil refining companies in the Gulf region:
These refining facilities are precisely adapted to Venezuelan oil - and these companies may profit from cheap oil?
What else?
Reports emerging in the last 24 hours claim that Trump is planning a massive reconstruction program for infrastructure in Venezuela - with an emphasis on oil infrastructure
Here we are following Caterpillar $CAT - among whose clients the American administration can be found as a service provider in reconstruction programs.
And will the account finally be settled?
Did you know that ConocoPhillips $COP has claims for billions of dollars against Venezuela?
After Venezuela lost its last appeal in January 2025, the total amount (including accumulated interest of 5.5% per year) crossed the $11 billion mark.
In fact - this is Venezuela's largest and most aggressive creditor.
Finally:
Let's remember that this entire event is a military event...
The United States is once again demonstrating its military capabilities for the second time in the last year - with Iran being the one that took the hit last time.
In the next post, we will talk about the other big event happening this week in Las Vegas