Michael Burry's big play off the U.S.-Venezuela situation, which the investor has held for years
CNBC••business
Key Points:
- Michael Burry has held a position in Valero Energy since 2020, viewing it as increasingly attractive due to the U.S. potentially playing a larger role in reviving Venezuela's oil industry, particularly because many Gulf Coast refineries are designed for Venezuelan heavy crude.
- President Donald Trump recently encouraged U.S. oil companies to invest in Venezuela following political changes, highlighting Venezuela's vast heavy crude reserves, which only select refineries like Valero can efficiently process.
- Wall Street analysts also see Valero as the primary beneficiary if Venezuelan oil exports recover, with the company's shares rising about 10% recently, though any significant export recovery is expected to take years.
- Burry identifies additional opportunities in U.S. oil
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