Chevron and Shell are nearing agreements to boost oil production in Venezuela, marking the first major deals since the U.S. captured former president Nicolás Maduro. The companies are negotiating with the Venezuelan government to increase output, leveraging their technical expertise and capital to stabilize the country's struggling oil sector. The U.S. has long sought to counter Russian and Chinese influence in the region, and these deals could signal a shift in geopolitical dynamics. For markets, the news could impact global oil prices, as Venezuela holds the world's largest oil reserves. Traders will monitor how increased production affects OPEC+ supply targets and U.S. sanctions on the country. The outcome may also influence investor sentiment toward energy stocks and commodities. Next steps include finalizing contract terms and securing regulatory approvals, with potential production hikes expected by mid-2024.

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