Dow rises 750 points in midday trading, S&P 500 and Nasdaq climb as energy stocks lead the broader market higher

[SARose]

4. This makes no sense

At 12:42 pm CT the price of sweet crude is $58.35/barrel.

Oil would have to be approximately $100/barrel to break even on Venezuela heavy crude. Yes, refineries along the Gulf Coast are tooled to process heavy crude, originally from Venezuela. However, most “heavy” crude refined along the Gulf Coast comes from US and Canadian shale.

Five energy market trends to track in 2026, the year of the glut

So two things

1) oil companies need stability to explore, drill, and refine oil. Not happening in Venezuela now and maybe not for a long time. Post Iraq War is a good example.

2) bringing Venezuela crude back into the market will take years. Lake Maracaibo is one huuuggge contaminated mess due to lack of maintenance. Same is true with most Venezuelan refineries.

The Chinese have already invested $1 billion to build the first off shore drilling platform in Lake Maracaibo in 50 years and to simply begin routine maintenance on existing refineries.