Mar. 23 at 2:20 PM
🚨 HISTORIC: EU-MERCOSUR DEAL STARTS MAY 1 🚨
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After 25 YEARS of negotiations — it's done.
700 MILLION PEOPLE.
25% OF GLOBAL GDP.
One of the largest free-trade zones on Earth goes live in 5 weeks .
Why this matters for
$XOM and
$CVX:
South America just became a friction-free trade corridor for energy exports. Tariffs? Gone. Red tape? Reduced.
$CVX $162.80
Already pumping 240K bpd in Venezuela. Could double output quickly . This deal = smoother logistics for existing ops.
$XOM $124.30
CEO called Venezuela "uninvestable" in January — but that was before this deal locked in . Guyana (break-even ~
$35) just got a direct line to EU markets .
The Macro:
Von der Leyen says this is about "resilience, growth, and Europe shaping its own future" . The EU is diversifying AWAY from China/US. South American oil just became strategic.
Energy stocks are sleeping on this. Don't wait for the Q2 earnings calls to figure it out.