Chevron and Exxon Surge on Venezuela Deal and Middle East Tensions

Energy stocks surged on Monday as two major oil catalysts collided: renewed fighting in the Middle East and a deal between the US and Venezuela to control over 65 billion barrels of Venezuelan oil reserves.

Chevron, Exxon, Halliburton, and Occidental Petroleum led the gains, with Chevron's stock up 1% at $208.18 and Exxon trading at $162.91, up 1.2% intraday.

According to CEO Mike Wirth, Chevron has grown production from its three joint ventures with PDVSA in Venezuela 'from 40,000 to 250,000' barrels per day, but the deal's impact on supply won't be felt immediately.

The US and Iran traded strikes over the weekend, sending oil prices up 3%, while the Venezuela deal adds a long-horizon reserves story that could take years to translate into meaningful production.