BP's Venezuelan Oil Trade Boosts Energy Stocks Amid Rising Prices

Energy stocks have seen a slight increase as oil prices remain near $85 a barrel and US natural gas climbs 3%. This upward trend is partly due to the news that BP, one of the world's largest oil companies, has started trading Venezuelan oil again. A tanker carrying approximately 400,000 barrels of Venezuelan heavy fuel oil supplied by state-owned Petroleos de Venezuela for delivery to Houston has been loaded.

This development is significant because many US Gulf Coast refineries are designed to process heavier grades of oil. The extra shipment can help loosen a tight market for this type of refinery input, even if benchmark prices like WTI and Brent barely budge. As a result, profits may shift from the pure 'oil price goes up' trade to refining margins and trading operations.

The return on investments inside the energy sector may diverge as refiners and integrated majors with big downstream and trading operations may benefit even if benchmark crude prices don't do much. Pure producers, however, will remain more tied to WTI and Brent.