Shares in US oil companies surged on Monday as investors reacted to the capture of Venezuelan President Nicolás Maduro by US forces. Chevron, the only major US operator currently active in Venezuela, gained 4.4%, while ExxonMobil and ConocoPhillips rose 2% and 4.1% respectively.
The Dow Jones Industrial Average hit a record high, buoyed by the energy sector. Traders anticipate that the removal of Maduro could open up Venezuela's vast oil reserves to American firms. However, analysts caution that billions of dollars in investment are needed to rebuild the country's crumbling infrastructure before production can be meaningfully increased.
Oil prices edged higher, with Brent crude up 1.2% to $61.48 a barrel and West Texas Intermediate rising 1.4% to $58.11. Gold and silver also rallied, as did shares in defence companies such as BAE Systems and Babcock.
In London, the FTSE 100 closed above 10,000 points for the first time, finishing at 10,004. The index was boosted by mining and defence stocks, with Antofagasta up 5.9% and Endeavour Mining climbing 5.5%.
Venezuelan government bonds also rose as investors speculated on a future debt restructuring following the political upheaval.
