Tensions Rise In Venezuela As Opposition Disputes Election Results: Impact On Oil ETFs

Venezuelan President Nicolás Maduro faces intense criticism following his declared victory in a contentious presidential election.

What Happened: The opposition, led by candidate Edmundo González, disputes the results, claiming they secured a significant win, according to the Associated Press.

Thousands of supporters rallied outside the United Nations' offices in Caracas, asserting González’s victory.

Opposition leader Maria Corina Machado, addressing the crowd from atop a truck, called on the National Electoral Council (CNE) to release the voting tally sheets from each precinct, questioning the transparency of the election process.

Machado claimed the opposition coalition had obtained over 84% of the tallies, expressing confidence in González’s victory. She emphasized the opposition’s commitment to a peaceful transition, while González predicted his final vote count would exceed 8 million, compared to the 5.1 million reported by the CNE for Maduro.

González, along with Machado, urged supporters to maintain calm and avoid violence during the protests.

The Organization of American States (OAS) criticized the CNE for not releasing detailed results, labeling the situation as a form of repression and calling for a possible new election under international observation.

Maduro’s allies, including National Assembly President Jorge Rodriguez and lawmaker Diosdado Cabello, are defending the president’s victory and condemning the opposition as fascists.

See Also: Kamala Harris Says ‘The Will Of The Venezuelan People Must Be Respected’

Why It Matters: Venezuela possesses the world's largest proven crude oil reserves.

But, under Maduro, the nation has suffered severe economic decline since 2013, including plummeting oil prices, shortages, and hyperinflation.

As a result, Venezuela suffers from widespread social unrest and the largest emigration crisis in Latin America’s recent history — over 7.7 million Venezuelans have reportedly left the country over the past decade.

Protests erupted nationwide on Monday, with significant unrest in Caracas where riot police clashed with demonstrators. The Attorney General reported hundreds of arrests, with at least one dead and dozens of security personnel injured.

Notably, opposition leader Freddy Superlano was detained under unclear circumstances, raising concerns about the government’s response to dissent.

The election was considered a critical moment for Venezuela. It offered a chance for change after 25 years of single-party rule.

The Biden administration contemplated reinstating oil sanctions on Venezuela due to concerns over the fairness of the election. The disputed results have once again cast a shadow over the election process.

Long lines formed outside stores in Caracas as people braced for potential food shortages amid ongoing demonstrations.

Maduro accused the opposition of attempting a coup.

In a symbolic act of defiance, protesters are toppling statues of former President Hugo Chávez — Maduro’s mentor.

Price Action: On Tuesday, major oil companies finished in the green:

• Chevron Corp (NYSE:CVX) was up 1.90% to $159.57.
• Exxon Mobil (NYSE:XOM) was up 1.78% to $118.17.
• Marathon Oil (NYSE:MRO) was up 0.69% to $27.64.
• ConocoPhillips (NYSE:COP) was up 0.72% to $109.91.
• EOG Resources (NYSE:EOG) was up 0.75% to $126.15.

Most ETFs tied to the oil sector also closed higher, according to Benzinga Pro: SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE) was up 1.55%; Vanguard Energy ETF (NYSE:VDE) was up 1.5%; and iShares U.S. Energy ETF (NYSE:IYE) finished 1.29% higher.

Only United States Oil Fund (NYSE:USO) traded lower on Tuesday, down 0.97%.

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